Tata Chemicals has received an approval for sale, disposal and transfer of Phosphatic Fertilisers business, and the trading business comprising of bulk fertilisers and non-bulk fertilisers (Phosphatic Business), by way of a slump sale, on a going concern basis, by the company to IRC Agrochemicals (IRC), a wholly owned subsidiary of Indorama Holdings BV, Netherlands (part of Indorama Corporation, Singapore) on the terms and conditions laid down in the Business Transfer Agreement (BTA). The board of directors of the company at its meeting held on November 6, 2017 has considered and accepted the recommendations of the Committee of Directors.
The transaction would involve transfer of Haldia Plant, Trading Business of bulk and nonbulk fertilisers along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts. The lump sum consideration for the transfer of the Phosphatic Business of the company by way of a slump sale is Rs 375 crore, subject to certain adjustments after closing, as agreed between the parties in terms of the BTA.
This divestment by Tata Chemicals is in line with the strategic direction of the company to focus on Speciality Chemical and Food businesses, while maintaining leadership in Inorganic chemicals and exiting the fertiliser business.