Tata Chemicals completes sale of urea and customized fertilisers business to Yara Fertilisers
Tata Chemicals Ltd (TCL) has completed the sale of urea and customized fertilisers business (Divestment Business) to Yara Fertilisers India Pvt Ltd. The company has received requisite regulatory approvals, after fulfillment of conditions precedent and sanctioned by the National Company Law Tribunal (NCLT).
Accordingly, the Certified Copy of the Order of NCLT sanctioning the Scheme has been flled electronically with the Registrar of Companies, Ministry of Corporate Affairs, on January 12, 2018. Thus, the Scheme has become effective from January 12, 2018 and the Divestment Business of the company pursuant to the Scheme stands transferred to Yara.
Tata Chemicals has received the consideration of Rs2,682cr (subject to post completion working capital adjustments) from Yara on January 12, 2018.
The divestment strategy from fertilizers business would help TCL to reduce its debt and deleverage its financials. Over the longer term, the management has identified growth areas such as specialty chemicals, consumer products as well as inorganic chemicals. Over FY17-19E, we expect EBITDA and PAT margins to expand by 240bps and 150bps respectively.
Tata Chemicals Ltd is currently trading at Rs775.05, up by Rs4.15 or 0.54% from its previous closing of Rs770.9 on the BSE.
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Via:: Stock – India Infoline