Zuari Agro Chem sells Goa fertilizer plant to Paradeep Phosphates for $280 million

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Kolkata: The board of (ZACL), the agriculture vertical of the Adventz Group, has permitted the sale of its fertilizer plant in Goa and the related companies to the group’s three way partnership Paradeep Phosphates Ltd (PPL) for a complete consideration of $280 million (about Rs 2027.46 crore).

As per a regulatory submitting, the board has permitted the unload ‘as a going concern and on a hunch sale foundation’. PPL plans to fund the acquisition by a mixture of fairness, debt and inside accruals.

Proceeds from the transaction will probably be used to ‘handle the long run liabilities’ of Zuari Agro Chemical compounds, the corporate mentioned in a regulatory submitting. For the FY’2019-20, the web price of the Goa unit was a unfavourable Rs 650.15 crore.

Zuari Agro Chemical compounds’ board had, in June 2020, given its ‘in-principle’ approval for the sale on strategic and monetary grounds. The Goa unit is engaged within the manufacture, distribution, imports and sale of urea, DAP and numerous grades of NPK fertilizers.

The enterprise switch settlement is anticipated to executed in February 2021, topic to due diligence and regulatory approvals. PPL is a joint venture between Zuari Agro and Morocco-based OCP Group.

The divestment of the Goa plant by ZACL is geared toward consolidating the group’s bulk fertilizer enterprise. With this restructuring, the corporate now has a clearly earmarked enterprise into specialty vitamins and retail by way of its wholly owned subsidiary Zuari FarmHub Ltd and the majority enterprise of Goa plant and Paradeep operations consolidated beneath its three way partnership, Paradeep Phosphates, the corporate mentioned in an announcement.

Going ahead, the group intends to develop the majority fertilizer enterprise by way of PPL and Mangalore Chemical compounds & Fertilizers and the speciality enterprise by way of Zuari FarmHub, it added.