Agrochemicals firm UPL has sold its entire 50 per cent stake in its Brazilian subsidiary Sipcam UPL Brasil SA for USD 58.50 million to an Italian firm.
Sipcam UPL Brasil SA, a joint venture between UPL (formerly known as United Phosphorus Ltd) and Italian company Sipcam with both companies have equal stake of 50 per cent each.
"UPL has entered into an agreement with an Italian company Sipcam to sell its entire stake of 50 per cent in Brazilian agrochemicals company Sipcam UPL Brasil SA subject to fulfilment of certain conditions and approvals," the Indian company UPL said in a statement.
The gross consideration amount of the transaction is USD 58.50 million (approximately Rs 3.51 billion). This will be the first major divestment by UPL and the entire process is expected to completed by June this year, the statement added.
The company is planing to use the cash released from the sale of stake for its business requirements.
"The divestment will release the funds to the company which will be available for new opportunities and meet growing business requirements. It will also help UPL to have more focused approach for Brazilian agrochemicals market...," it added.
UPL also have stake in another Brazilian firm, UPL do Brasil Industria e Comerciode Insumos Agropecuarios S.A. In which, it has recently raised its stake to 73 per cent.
The company's revenue for the year ended on March 31, 2013 was about Rs 91.8 billion.
