Coromandel International has signed a definitive share purchase agreement (SPA) to acquire promoters’ stake up to a maximum of 56.28% in Liberty Phosphate (LPL) at Rs 241 per share. Coromandel will also make an open offer to acquire a further 26% stake from all Public Shareholders of LPL at a price of Rs 241 per share in accordance with the SEBI (Substantial Acquisition Shares and Takeover Regulations) 2011.
Additionally, under a separate agreement, Coromandel has agreed to acquire 100% stake in Liberty Urvarak (LUL) and has also executed a term sheet for acquiring the business undertaking of Tungabhadra Fertilizers & Chemicals Company (TFCCL Business) through a slump sale.
The total cost of the above transactions is likely to be in the range of Rs 348 crore to Rs 375 crore which includes purchase of promoters’ stakes of up to 56.28% and open offer of 26% in LPL, 100% stake in LUL and the TFCCL Business as mentioned above. All these transactions will be entirely funded through internal accruals of Coromandel International.
Liberty group is amongst India’s largest manufacturer of powdered and granulated SSP with 14% market share. The group has 6 existing plants located in Baroda, Udaipur, Pali, Kota, Nimrani and Hospet and is expected to close the year with a combined installed capacity of 9.6 lakh MT and combined licensed capacity of 8.09 lakh MT. LPL is also setting up a 1.32 lakh MT green field SSP unit at Rae Bareli.
Further, combined with the company’s existing SSP plant in Ranipet with a capacity of 1.3 lakh MT, the acquisition will make Coromandel amongst India’s leading SSP manufacturer with a total capacity of over one million MT.
| Company Name | CMP |
|---|---|
| National Fertilizers | 116.30 |
| Coromandel Interntl. | 1937.40 |
| Chambal Fert & Chem | 500.55 |
| RCF | 175.70 |
| Paradeep Phosphates | 121.40 |
| View more.. | |
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