Coromandel International Limited entered into a term sheet to acquire Tungbhadra Fertilizers and Chemicals Company Limited from Liberty Phosphate Ltd. for INR 100 million.
January 23, 2013 at 11:00 pm EST
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Coromandel International Limited (BSE:506395) entered into a term sheet to acquire Tungbhadra Fertilizers and Chemicals Company Limited from Liberty Phosphate Ltd. (BSE:530273) for INR 100 million in cash on January 24, 2013. Coromandel International will acquire the entire business of Tungbhadra Fertilizers and Chemicals Company Limited as a going concern on a slump sale basis. Coromandel International Limited (BSE:506395) entered into a definitive agreement to acquire Tungbhadra Fertilizers and Chemicals Company Limited from Liberty Phosphate Ltd. (BSE:530273) in cash on February 8, 2013.
In related transactions, Coromandel entered into share purchase agreement to acquire 56.28% stake in Liberty Phosphate Ltd. from Anisha R. Dhanani, Raoof R. Dhanani, Saba R. Dhanani, Sadiya R. Dhanani, Azhar Y. Dhanani, and Zuber Y. Dhanani for INR 2 billion and made an offer to acquire 26% stake in Liberty Phosphate Ltd. for approximately INR 900 million. Coromandel International Limited also entered into an agreement to acquire Liberty Urvarak Limited from Anisha R. Dhanani, Raoof R. Dhanani, Saba R. Dhanani, Sadiya R. Dhanani, Sumera R Dhanani, Shakil Z Memom, Rizwan R Shaikh and Indus Salt FZC in cash on January 24, 2013. Coromandel International will pay INR 880 million for acquiring Liberty Urvarak Limited and Tungbhadra Fertilizers and Chemicals Company Limited. The deal is funded from internal accrual of Coromandel. Coromandel International has made arrangements for financing of the deal.
The Board of Coromandel International approved the deal on January 24, 2013. Darshika Kothari, Nilanjana Singh, Rinki Ganguli and Arpita Acharya of AZB & Partners acted as legal advisors for Coromandel International.
Coromandel International Limited is engaged in the manufacturing and trading of farm inputs consisting of fertilizers, crop protection, specialty nutrients and organic compost. The Company's segments include Nutrient and other allied businesses, and Crop Protection. Its products and services include fertilizer, crop protection, specialty nutrients and organic. The Companyâs fertilizers products include GroShakti Plus, Grosmart, Paramfos, Gromor 15-15-15-09, Godavari Ultra DAP, Gromor / Godavari DAP, Gromor MOP, Gromor Urea, and others. Its speciality nutrients products include Acumist Calcium, AcuMist Zinc, Sulphamax, and others. Its crop protection products consist of insecticides, fungicides, herbicides, plant growth regulators and bio-products. It offers organic fertilizers derived from natural sources like city waste (organic portion only), sugarcane molasses and its by-products, oil cakes and gypsum. The Company operates a network of over 750 rural retail outlets across India.
Coromandel International Limited entered into a term sheet to acquire Tungbhadra Fertilizers and Chemicals Company Limited from Liberty Phosphate Ltd. for INR 100 million.
COROMANDEL INTERNATIONAL LIMITED 
