Indorama India Private Limited completed the acquisition of Fertilizer Business of Grasim Industries Limited.
January 31, 2021
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Indorama India Private Limited entered into a definitive agreement to acquire Fertilizer Business of Grasim Industries Limited (NSEI:GRASIM) for INR 26.5 billion on November 12, 2020. The transfer of the business will be for a lump-sum cash consideration to be paid by IIP to Grasim. The consideration for the transfer of business of the Grasim involving manufacture, trading and sale of urea, customised fertilisers, agri-inputs, crop protection, plant and soil health products and specialty fertilizers. For year ended March 31, 2020, the total turnover from fertilizer business was INR 26.8 billion and have net worth of INR 13.4 billion.
The Board of Directors of Grasim Industries Limited approved the transaction in a meeting held on November 12, 2020. The transaction is subject to the approval of the shareholders, creditors and other the necessary statutory and regulatory approvals including approvals of the NCLT, the Stock Exchanges, SEBI, Competition Commission of India (CCI) and sanction of the jurisdictional National Company Law Tribunal and is expected to take around 9 months to be consummated, subject to regulatory approvals. As of January 28, 2021, Competition Commission of India has approved the transaction. Transaction will help Grasim to release capital and resources to focus and pursue growth opportunities in its core businesses. As of February 6, 2021, Grasim has received Observation Letters with "no adverse observation" from BSE Limited and "no objection" from National Stock Exchange of India Limited for the proposed Scheme of Arrangement between Grasim Industries Limited and Indorama India Private Limited and their respective Shareholders and Creditors under Sections 230 to 232 of the Companies Act, 2013 and other relevant provisions under the applicable law. As of April 17, 2021, Majority of Secured Creditors representing three-fourth in value has approved the proposed Scheme of Arrangement between Grasim Industries Limited and Indorama India Private Limited and their respective Shareholders and Creditors. As of September 2, 2021, The National Company Law Tribunal has sanctioned the scheme of arrangement between Grasim Industries and Indorama India. As of November 12, 2021, the transaction is expected to be completed in December, 2021.
Kotak Mahindra Capital Company Limited acted as Independent Fairness Opinion advisor and Cyril Amarchand Mangaldas acted a legal advisor to Grasim Industries. KFin Technologies Private Limited acted as transfer agent to Grasim Industries. Bansi S. Mehta & Co acted as Independent Registered Valuer in transaction.
Indorama India Private Limited completed the acquisition of Fertilizer Business of Grasim Industries Limited (NSEI:GRASIM) on January 1, 2022.
Grasim Industries Limited is an India-based producer of cellulosic fibers, diversified chemicals, fashion yarn and fabrics producer. Its segments include Cellulosic Fibres, Chemicals, Building Material, Financial Service and Others. Its Cellulosic Fibres segment includes cellulosic staple fiber (CSF) and cellulosic fashion yarn (CFY). The Chemical segment includes chlor alkali, specialty chemicals and chlorine derivatives. The Building Material segment includes cement, paints and business to business (B2B) e-commerce businesses. The Others segment includes textiles, insulators and renewable power business. Its chlor-alkali business is engaged in the production of caustic soda, wide array of chlorine derivatives and specialty chemicals like epoxy polymers and curing agents. Its cement products include grey cement, white cement, ready mix concrete and wall putty products. Birla Pivot, the Company's the B2B e-commerce business unit, offers integrated procurement solutions.