June 01, 2018
Tata Chemicals completes sale of phosphatic business to IRC Agrochemicals
Moves out of fertilizer and regulated farm business
Tata Chemicals today announced that the company has completed the sale and disposal of its phosphatic fertilisers business and the trading business comprising bulk and non-bulk fertilisers, by way of a slump sale on a going concern basis, to IRC Agrochemicals Private Limited after the receipt of requisite regulatory approvals and fulfilment of conditions precedent as contemplated in the Business Transfer Agreement dated November 6, 2017.
The company has received the consideration of Rs872.84 crore (subject to usual post completion adjustments) from IRC today, i.e. June 1, 2018. The consideration includes Rs572.76 crore in cash and balance by way of letters of credit/bank guarantees. Subsidy receivables were not included in the transaction.
Thus, on completion of the transaction, the Divestment Business of the Company pursuant to the BTA stands transferred to IRC Agrochemicals effective June 1, 2018.
Earlier this year the Company also announced the completion of sale of the Urea business to Yara Fertilisers India for a consideration of Rs.2682 Cr.
R Mukundan, managing director, Tata Chemicals, said “The sale of the fertilizer and regulated farm business is in line with our strategic direction to unlock value and pursue growth potential in our focus areas. With today’s announcement, I am pleased to say that we have successfully completed our first stage of transformation. The company is poised for growth with a transformation agenda built on innovation, sustainability and digitisation.
We are excited to explore the opportunities that lie ahead for us as we move forward with a focus on specialty chemicals and consumer food business, while maintaining leadership in Inorganic Chemicals Business. The company will continue to have a presence in the farm business through its subsidiary Rallis and Metahelix"