ICI clears sale of units to CDC for Rs 75 crore

The board of directors of ICI India Ltd, at its meeting held December 23, has cleared the sale of the company's nitrocellulose and trading businesses to an affiliate of CDC Group plc, UK, subject to final approval by the shareholders.

The total consideration for this transaction will be about Rs 75 crore, of which Rs 12.75 crore will be payable in three equal annual instalments subject to adjustment for working capital changes between March 31, 2003, and the actual transfer date, a statement from the company said.

The company said that the necessary legal documentation between the parties be executed shortly. The businesses, including about 130 employees, will be transferred as a going concern, upon receipt of the statutory and other approvals.

The net sales revenue from the businesses in the financial year ended March 31, 2003, was Rs 77 crore.

ICI India said it has chalked out a strategy to exit non-core businesses in a value-enhancing manner and aggressively grow its core businesses.

The company's board said it believed that the proposal is in line with this strategy and is in the best interests of all shareholders, employees and customers.