 "Tata Chemicals hits 52-week high on sale urea business")
Tata Chemicals have surged 8% to Rs 501, also its 52-week high on the National Stock Exchange (NSE), after the company announced sale of its urea business to Yara for Rs 2,670 crore.
The board of directors of Tata Chemicals on Wednesday considered and accepted the recommendations of the committee of directors as well as the audit committee, for the transfer of the business of sale and distribution of urea and customized fertilisers, manufactured by the company at its plants located in Babrala, Uttar Pradesh, by way of a slump sale by the company to Yara Fertilisers India Private Limited.
The lump sum consideration for the transfer of the urea business of the company by way of a slump sale pursuant to the scheme is Rs 2,670 crore, subject to certain adjustments after closing, as agreed between the parties in terms of the definitive agreements and the scheme.
Tata Chemicals said, the divestment of the urea business will unlock value for the Company, strengthen its balance sheet and will help to pursue growth potentials and opportunities in line with its strategic directions.
This process of divestment by the company is in line with the strategic direction of the company to continue to strengthen the fertiliser businesses by partnerships and/or transfer of ownership to world class companies. The Urea business will now have the benefit of International network of Yara and its global expertise, it added.
At 12:11 am, the stock was up 6% at Rs 491, after hitting low of Rs 457 on the NSE in intra-day trade. Nifty 50 was down 0.84% or 73 points at 8,605.
The trading volumes on the counter jumped more than seven-fold with a combined 3.03 million shares changed hands on the BSE and NSE.
The board of directors of Tata Chemicals on Wednesday considered and accepted the recommendations of the committee of directors as well as the audit committee, for the transfer of the business of sale and distribution of urea and customized fertilisers, manufactured by the company at its plants located in Babrala, Uttar Pradesh, by way of a slump sale by the company to Yara Fertilisers India Private Limited.
The lump sum consideration for the transfer of the urea business of the company by way of a slump sale pursuant to the scheme is Rs 2,670 crore, subject to certain adjustments after closing, as agreed between the parties in terms of the definitive agreements and the scheme.
Tata Chemicals said, the divestment of the urea business will unlock value for the Company, strengthen its balance sheet and will help to pursue growth potentials and opportunities in line with its strategic directions.
This process of divestment by the company is in line with the strategic direction of the company to continue to strengthen the fertiliser businesses by partnerships and/or transfer of ownership to world class companies. The Urea business will now have the benefit of International network of Yara and its global expertise, it added.
At 12:11 am, the stock was up 6% at Rs 491, after hitting low of Rs 457 on the NSE in intra-day trade. Nifty 50 was down 0.84% or 73 points at 8,605.
The trading volumes on the counter jumped more than seven-fold with a combined 3.03 million shares changed hands on the BSE and NSE.
