Tata Chemicals is in advanced stages of discussions and negotiations with Indorama Holdings BV, Netherlands (subsidiary of Indorama Corporation, Singapore), for the potential sale of its Phosphatic Fertiliser Business located at Haldia and the trading business comprising of bulk and non-bulk fertilisers. The parties have a mutually agreed exclusivity agreement in this regard which expires on October 31, 2017.
The potential transaction would be subject to due diligence, agreement on the definitive documents and approvals from the Board, Shareholders and Regulatory Authorities as may be required, and there is no certainty of the transaction being completed. The transaction if materialized would involve transfer of Haldia Plant, Trading Business along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts. The company is expected to receive consideration in the range of Rs 400 crore to Rs 500 crore.
Tata Chemicals is the second-largest producer of soda ash in the world with manufacturing facilities in India, UK, Kenya and USA. It is India’s leading crop nutrients player and a leading player in crop protection business through its subsidiary Rallis India.