Tata Chemicals Ltd. will sell its phosphatic fertiliser business in a slump sale to IRC Agrochemicals Pvt. Ltd. for Rs 375 crore.
The transaction will involve transfer of Tata Chemicals' Haldia Plant, the bulk and non-bulk fertiliser trading businesses along with immovable and movable assets, working capital and product brands, the company said in an emailed media statement. However, the deal does not require the outstanding subsidy amounts to be paid, the statement added.
IRC Agrochemicals is a wholly-owned subsidiary of Netherlands' Indorama Holdings BV.
The stake sale is in line with Tata Chemicals' plans to focus on the specialty chemical and food business, while maintaining its market leadership in inorganic chemicals, R Mukundan, managing director of Tata Chemicals said in the statement. “The Company is pleased to have found a partner with long term interest in the phosphatic and fertiliser business who would build this Phosphatic business further,” he added.
In August, Tata Chemicals had sold its urea business to Yara Fertilisers for Rs 2,670 crore.
Tata Chemicals' specialty business includes sodium bicarbonate production, agrochemicals and silica businesses. The food business houses pulses and spices sold under the Tata brand including Tata Salt.
Ahead of the announcement, shares closed 0.8 percent higher while the benchmark S&P BSE Sensex ended trade 0.14 percent up.
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