Tata Chemicals has completed the sale and disposal of its Phosphatic Fertilisers business and the Trading business comprising bulk and non-bulk fertilisers ('Divestment Business'), by way of a slump sale on a going concern basis, to IRC Agrochemicals (IRC) after the receipt of requisite regulatory approvals and fulfilment of Conditions Precedent as contemplated in the Business Transfer Agreement (BTA) dated November 6, 2017.
The company has received a consideration of Rs 872.84 crore (subject to usual post completion adjustments) from IRC on June 1, 2018. The consideration includes Rs 572.76 crore in cash and the 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 effective June 1, 2018.
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.