In its first major divestment, Agrochemicals major UPL has completed the process of selling its 50 per cent stake in joint venture firm Sipcam UPL Brasil SA for USD 58.50 million.
On April 1 this year, UPL (formerly known as United Phosphorus Ltd) had said it has entered into an agreement with an Italian company Sipcam to sell its entire 50 per cent stake in Brazilian agrochemicals company Sipcam UPL Brasil SA.
Sipcam UPL Brasil SA was a joint venture between UPL and Italian company Sipcam where both partners had equal stake.
The gross consideration amount of the transaction is USD 58.50 million (approximately Rs 3.51 billion). This will be the first major divestment by UPL, the company had said.
"...Now, as a matter of Corporate Governance, this is to inform you that UPL Ltd...Through its overseas subsidiary, has completed the transaction to sell its entire stake of 50 per cent in the Brazilian agrochemicals company Sipcam UPL Brasil SA," the company today said in BSE filing.
The company is planning to use the cash released from the sale of stake for its business requirements.
In an earlier filing, the UPL had said, this divestment would release the funds to the company which would be available for new opportunities and meet growing business requirements. It would also help UPL to have more focused approach for Brazilian agrochemicals market.
UPL also has stake in another Brazilian firm, UPL do Brasil Industria e Comerciode Insumos Agropecuarios S.A where it has recently raised stake to 73 per cent.
The company's revenue for the year ended on March 31, 2013 was about Rs 91.8 billion.
Shares of UPL today closed 3.15 per cent down to end at Rs 313.10 apiece on the BSE.
