Tata Chemicals surges nearly 9% on Yara Fertilisers deal

Shares of Tata Chemicals today jumped nearly 9 per cent after the company announced sale of its urea business to Yara Fertilisers India Pvt Ltd for Rs 2,670 crore.

The scrip zoomed 8.77 per cent to settle at Rs 503.60 on BSE. During the day, it had soared 10 per cent to Rs 509.30 -- its 52-week high.

On NSE, shares of the company advanced by 8.82 per cent to end at Rs 504.10.

The company added Rs 1,034.53 crore to Rs 12,829.53 crore in market valuation.

The Board of the company at its meeting today "considered and accepted the recommendations of the Committee of Directors as well as the Audit Committee, for the transfer of the business of sale and distribution of urea and customised fertilisers, manufactured by the company at its plants located in Babrala, Uttar Pradesh, by way of a slump sale to Yara Fertilisers India Pvt Ltd," Tata Chemicals said in a statement.
 

The deal is subject to all requisite regulatory and other approvals and sanction by the High Court/National Company Law Tribunal (NCLT).

"The urea business along with the assets, liabilities, contracts, deeds etc, shall be transferred and vested with Yara India pursuant to the Scheme of Arrangement becoming effective on a slump sale basis i.E, in exchange of a lump sum consideration to be paid by Yara India," the statement said.

The sale consideration is Rs 2,670 crore, "subject to certain adjustments after closing, as agreed between the parties in terms of the definitive agreements and the Scheme", it said.