India’s Grasim to sell fertiliser arm to Indorama

MUMBAI (ICIS)–India’s Grasim Industries will divest its entire stake in its fertiliser business, Indo Gulf Fertilisers (IGF) to Indorama India for a consideration of Rs 26.49bn ($354.47m), the company said in a statement.

IGF operates a 1.2m tonnes/year urea plant at Jagdishpur in northern Uttar Pradesh state and is also engaged in trading urea and other agricultural inputs, Grasim said in the statement on 12 November.

Indorama India is a subsidiary of Singapore-based Indorama Corp Pte Ltd.

“The divestment of the fertiliser business by Grasim is a strategic portfolio choice and unlocks value for the shareholders,” Grasim Managing Director Dilip Gaur said.

“To take it to the next level in size and value, the company is pleased to have found in Indorama Corporation, a credible fertiliser player to own IGF. IGF will benefit from synergies and expertise of Indorama Corporation’s existing agri portfolio,” he added.

The divestment will also enable the company to pursue growth opportunities in its core businesses, the statement added.

The transaction to be completed ion nine months, is subject to necessary statutory and regulatory approvals including approvals of the National Company Law Tribunal (NCLT), stock exchanges, Securities and Exchange Board of India, Competition Commission of India, and the respective shareholders and lenders of each of the companies.

($1=Rs74.73)