Tata Chemicals today said it has completed the sale of its Haldia fertiliser unit in West Bengal and the trading business to Netherlands-based Indorama Holdings BV for Rs.872.84 crore.
In a regulatory filing, the company said it has sold the Phosphatic fertiliser business and the trading business comprising bulk and non-bulk fertilisers by way of slump sale on a going concern basis to IRC Agrochemicals, a wholly-owned subsidiary of Indorama Holdings BV.
“The company has received a consideration of Rs.872.84 crores (subject to usual post completion adjustments) from IRC today,” Tata Chemicals said in the filing. The consideration includes Rs.572.76 crore cash and 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 stands transferred to IRC Agrochemicals effective June 1, 2018, it added.
Tata Chemicals had recently said that its divestment was in line with its strategic direction to focus on speciality chemical and food businesses while maintaining leadership in inorganic chemicals. Shares of the company were trading down by 0.56 per cent at Rs 735.40 on BSE in the afternoon.