Zuari Agro Chemicals Limited to sell Goa fertilizer plant to Paradeep Phosphates Ltd

The Board of Directors of Zuari Agro Chemicals Limited at its meeting held today i.e 22nd February, 2021, subject to the approval of shareholders and such other necessary approvals, consents, permissions and / or sanctions of the appropriate authorities, institutions or bodies as may be required, has approved the sale of Company's fertilizer plant at Goa and associated businesses of the Company to Paradeep Phosphates Limited (PPL) as a going concern, on a slump sale basis for an agreed enterprise value of USD 280 million as defined in the Business Transfer Agreement and for entering into necessary Business Transfer Agreement with PPL.

The revenue contributed by Goa Plant for the Financial Year 2019-20 was Rs. 199,923.39 lakhs which was 98.89% of the total revenue of the Company. The net worth of Goa Plant for the Financial Year 2019-20 was negative Rs. 65,015.38 lakhs.

The Enterprise Value of USD 280 million subject to customary adjustments for capex, cash, debt, cash-like items, debt-like items and working capital changes based on certain agreed parameters.

Paradeep Phosphates Limited (PPL) is a group company. PPL is the subsidiary of company's Joint Venture Zuari Maroc Phosphates Private Limited.

PPL plans to fund the acquisition amount partly (approx. INR 1000 crs) from Public issue and balance from loans & internal accruals. Outstanding amount by the Company to PPL and any loans of the Company that get transferred to PPL, would be reduced from the closing consideration.

Shares of ZUARI AGRO CHEMICALS LTD. was last trading in BSE at Rs.90.7 as compared to the previous close of Rs. 93.5. The total number of shares traded during the day was 7429 in over 181 trades.

The stock hit an intraday high of Rs. 93.8 and intraday low of 90.7. The net turnover during the day was Rs. 686919.

Source : Equity Bulls

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