At meeting held on 06 November 2017
The Board of Tata Chemicals at its meeting held on 06 November 2017 has considered and accepted the recommendations of the Committee of Directors 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 Indorama) on the terms and conditions laid down in the Business Transfer Agreement (BTA).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.
The Board of Directors also approved the execution of definitive agreements between the Company, IRC and Indorama Holdings BV, Netherlands for the sale and transfer of the Phosphatic Business from the Company to IRC pursuant to the BTA and subject to satisfaction of conditions precedent and all regulatory and other approvals as may be required, including the approval of the shareholders under Section 180(1)(a) of the Companies Act, 2013.
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.
The speciality chemical portfolio of the Company includes Sodium Bicarbonate business, Agrochemicals through its subsidiary, Rallis India in addition to the planned investments in the greenfield sites in Nellore for Nutraceuticals and in Dahej for the HD Silica business. The Food business of the Company includes the Pulses, Spices under Tata Sampann brand in addition to the market leading edible salt brand, Tata Salt.
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