Indorama Holdings B.V. entered into an agreement to acquire phosphatic fertilizers and trading business of bulk and non-bulk fertilizers from Tata Chemicals Limited for INR 3.8 billion.
November 06, 2017
Share
Indorama Holdings B.V. entered into an agreement to acquire phosphatic fertilizers and trading business of bulk and non-bulk fertilizers from Tata Chemicals Limited (BSE:500770) for INR 3.8 billion on November 6, 2017. The consideration is subject to certain adjustment after closing as agreed between the parties. The transaction include the sale of Haldia plant in West Bengal, trading business of bulk and non-bulk fertilizers along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts. As of March 31, 2017, divestment business has reported revenues of INR 26.3 billion.
The transaction is subject to certain conditions including regulatory and shareholder's approval of Tata Chemicals Limited. The committee of Directors for sale of phosphatic fertilizers business has recommended the transaction. The Board of Directors of Tata Chemicals Limited also approved on the transaction on the recommendation of Directors committee. As of January 10, 2018, Tata Chemicals Limited shareholders approved the transaction. The transaction is expected to complete on February 28, 2018. JM Financial Institutional Securities Limited and Kotak Mahindra Capital Company Limited acted as financial advisors while Deloitte Touche Tohmatsu India, LLP as accountant. Darshika Kothari, Anand Shah & Shriram Shah of AZB & Partners acted as legal advisor to Tata Chemicals Limited. KPMG acted as financial advisor to Indorama Holding.
Tata Chemicals Limited is an India-based sustainable chemistry solutions company. The Company's segments include Basic Chemistry Products and Specialty Products. Basic Chemistry Products segment comprises inorganic chemicals, such as soda ash, salt and sodium bicarbonate. These inorganic chemicals service industries, such as glass (automotive, architectural and container), detergent, food, pharma, animal feed and industrial chemicals. It has manufacturing operations across four continents: North America (United States of America), Europe (United Kingdom), Africa (Kenya) and Asia (India). Specialty Products segment includes three products: specialty silica, prebiotics and Agri inputs. Its specialty silica range serves food, rubber and tire industry. Its prebiotics and formulations are targeted at food, animal feed and pharmaceutical applications. The Company's subsidiary, Rallis India Limited, produces and markets a range of Agri inputs including seeds for Indian and overseas farmers.
Indorama Holdings B.V. entered into an agreement to acquire phosphatic fertilizers and trading business of bulk and non-bulk fertilizers from Tata Chemicals Limited for INR 3.8 billion.