Tata Chemicals Completes Sale of Phosphatic Business to IRC Agrochemicals

Tata Chemicals Ltd. (TCL) has announced that the company has completed the sale and disposal of its phosphatic fertilisers business and the trading business comprising bulk and non-bulk fertilisers, by way of a slump sale on a going concern basis, to IRC Agrochemicals Pvt. Ltd. after the receipt of requisite regulatory approvals and fulfillment of Conditions Precedent as contemplated in the Business Transfer Agreement dated November 6, 2017.

TCL has received a consideration of Rs. 872.84-crore (subject to usual post-completion adjustments) from IRC on June 1, 2018. The consideration includes Rs. 572.76-crore in cash and balance by way of letters of credit/bank guarantees. Subsidy receivables were not included in the transaction. Earlier this year, TCL announced the completion of sale of the Urea business to Yara Fertilisers India for a consideration of Rs. 2,682-crore.

Mr. R. Mukundan

“The sale of the fertilizer and regulated farm business is in line with our strategic direction to unlock value and pursue growth potential in our focus areas. With today’s announcement, I am pleased to say that we have successfully completed our first stage of transformation. The company is poised for growth with a transformation agenda built on Innovation, Sustainability and Digitisa-tion,” Mr. R. Mukundan, Managing Director, TCL, said. “We are excited to explore the opportunities that lie ahead for us as we move forward with a focus on specialty chemicals and consumer food business, while maintaining leadership in Inorganic Chemicals Business. The company will continue to have a presence in the farm business through its subsidiary Rallis and Metahelix,” he added.