Zuari Agro spurts after board OKs selling Goa unit

Zuari Agro Chemicals surged 14% to Rs 104.20 after the company's board approved selling the fertilizer plant at Goa and associated businesses to Paradeep Phosphates (PPL) for $280 million.

The board of Zuari Agro Chemicals at its meeting held today, 22 February 2021, approved the sale of the company's fertilizer plant at Goa and associated businesses of the company to Paradeep Phosphates (PPL) as a going concern, on a slump sale basis for an agreed enterprise value of $280 million as defined in the business transfer agreement.

PPL is a group company. It is the subsidiary of the company's joint venture, Zuari Maroc Phosphates. The transaction would fall within related related party transactions and is being done at an arm's length basis.

The business transfer agreement is expected to be executed in February 2021 and the expected date of completion is 30 June 2021.

PPL is engaged in the manufacturing Di-Ammonium Phosphate (DAP), complex fertilizers of NPK grades, and Zypmite (Gypsum based product), trading of fertilizers, ammonia, neutralized phospho gypsum, micronutrient and other materials.

On a consolidated basis, Zuari Agro Chemicals reported net loss of Rs 46.25 crore in Q3 December 2020 as compared to a net loss of Rs 118.50 crore in Q3 December 2019. Net sales rose 4.8% to Rs 927.41 crore in Q3 FY21 over Q3 FY20.

Zuari Agro Chemicals is engaged in the manufacture, sale and trading of fertilizers and seeds. The chemical firm is also an importer of fertilizers and farm nutrients. It produces fertilizers of various grades, along with seeds, pesticides, micro nutrients and specialty fertilizers.

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