Grasim Industries divests its fertilizer business to Indorama Corp.
Published by Pippa Luck,
Editorial Assistant
World Fertilizer,
The Board of Directors of Grasim Industries Ltd (Grasim) has approved the divestment of the company’s fertilzer business, Indo Gulf Fertilizers (IGF), by way of a slump sale to Indorama India Pte Ltd (IIP), a subsidiary of Indorama Corp. Pte Ltd Singapore (Indorama Corp.). The transfer of the business will be for a lump-sum cash consideration of Rs 2649, to be paid by IIP to Grasim. Indo Gulf Fertilizers is engaged in the manufacturing, trading, and sale of urea and other agri-inputs with a 1.2 million tpy urea manufacturing plant at Jagdishpur in Uttar Pradesh, India.
Speaking on the transaction, Mr Dilip Gaur, Managing Director of Grasim Industries Ltd, said: “The divestment of the fertilizer business by Grasim is a strategic portfolio choice and unlocks value for the shareholders. It is in line with the strategic thrust of the company to focus on core businesses. Indo Gulf Fertilizers is synonymous with strong performance and high sustainability standards. To take it to the next level in size and value, the company is pleased to have found in Indorama Corp. a credible fertilizer player to own IGF. IGF will benefit from [the] synergies and expertise of Indorama Corp.’s existing agri portfolio.”
Mr Amit Lohia, Vice Chairman of Indorama Corp., said: “We are pleased that with this acquisition, Shaktiman and the Paras brands will be able to join hands to offer a complete range of products for our farmers including urea, phosphate fertilizers, potash, soil health products, seeds, and crop protection products. We are excited about this union and believe it will facilitate greater access and development of high quality agri inputs for the farming community.”
The fertilizer business shall be transferred to IIP on a slump sale basis, pursuant to a scheme of arrangement. The lump sum consideration is subject to certain adjustments as agreed between the parties in terms of the definitive agreement and the scheme. The transaction is subject to the necessary statutory and regulatory approvals including approvals of the NCLT, the stock exchanges, the Securities and Exchange Board of India (SEBI), the Competition Commission of India (CCI), the respective Shareholders and lenders/creditors of each of the companies.
Read the article online at: https://www.worldfertilizer.com/special-reports/13112020/grasim-industries-divests-its-fertilizer-business-to-indorama-corp/
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