Tata Chemicals in talks with Indorama to sell Haldia unit for Rs 500 cr

Tata Chemicals has said it is in advanced talks with the Netherlands-based Indorama Holdings BV to sell its Haldia fertiliser unit in West Bengal for Rs 400- 500 crore.

Indorama Holdings is a subsidiary of Singapore-based Indorama Corporation.

"The parties have a mutually agreed exclusivity agreement in this regard which expires on 31st October, 2017," Tata Chemicals said in a statement last evening.

The sale consideration is expected to be Rs 400-500.

If the deal materialises, the transaction would involve transfer of Haldia plant, trading business along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts, it said.

The company said there is "no certainty" of the transaction being completed.

The deal would be subject to due diligence, agreement on the definitive documents and approvals from the Board, shareholders and regulatory authorities, it said.

The sale of the fertiliser unit is part of its strategy to rationalise it business. Tata Chemicals is into salt, pulses, fertilisers, seeds and chemicals business.

The company's stock was trading 0.24 per cent up at Rs 637.45 on BSE in the afternoon.