Tata Chemicals up over 3% on bourses post acquisition

Tata Chemicals today rose by over 3% in the morning trade on BSE, buoyed by the company's acquisition of 25.1% stake in ammonia urea fertiliser complex at Gabon in Africa.

Cheering the move, the stock rose by 3.41% to Rs 366.60 a share on Bombay Stock Exchange(BSE). Similarly, on National Stock Exchange, the scrip went up by 3.84% to Rs 369 a share.

On Monday, Tata Chemicals--- the world's second-largest producer of soda ash with presence in India, Kenya, the UK and the US--- acquired 25.1% stake in the ammonia-urea fertiliser complex at Gabon in Africa for $290 million.

The fertiliser complex, with a production capacity of 1.3 million tonnes per annum, is being set up through a joint venture between Olam and the Gabon government at an investment of $1.3 billion. In the JV, Olam held 80% stake while the Gabon government owned the rest.

After Tata Chemicals' acquisition of 25.1% stake, Olam and Gabon's shareholding would reduce to 62.9% and 12%, respectively.

Meanwhile, the BSE benchmark index Sensex was trading higher by 164.72 points at 19,427.26 level at 10:44 hrs.