Coromandel International in pact to buy Liberty Phosphate group

MUMBAI Fri Jan 25, 2013 11:25am IST

Related Topics

Stocks

   

MUMBAI (Reuters) - Coromandel International (CORF.NS) said it has signed a definitive agreement to buy a controlling stake in fertiliser maker Liberty Phosphate Ltd (LIBP.BO) and two of its affiliates for up to 3.75 billion rupees to strengthen its soil nutrients business.

Coromandel will buy the founders' stake of 56.28 percent in Liberty Phosphate for 241 rupees a share. It has also made an open offer to public shareholders of Liberty Phosphate for an additional 26 percent at the same price, it said in a filing with the Bombay Stock Exchange.

The acquisition will raise Coromandel's single super phosphate (SSP) capacity to over one million tonnes from the present 130,000 tonnes, the company said in a separate statement.

Coromandel will also buy 100 percent equity in Liberty Urvarak Ltd and Tungabhadra Fertilizers & Chemicals Co through separate agreements, it said.

Single super phosphate or SSP is obtained through a chemical reaction between rock phosphate and sulphuric and is a cheaper alternative to the popular diammonium phosphate. It helps treat sulphur deficiency in soil and enhances yield of crops such as oil seeds, pulses, sugarcane, fruits and vegetables.

Liberty Phosphate and its affiliates clocked a combined net profit of 68 million rupees on sales of 6.45 billion rupees in the fiscal year 2011/12, Coromandel said, adding it would fund the acquisition through internal accruals.

Shares in Coromandel International were down 6.8 percent at 11:25 a.m. while Liberty Phosphate was up 3.45 percent.

(Reporting by Kaustubh Kulkarni in MUMBAI; Editing by G.Ram Mohan)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

BACK IN JAIL

REUTERS SHOWCASE

Modi Hurdle

Modi Hurdle

Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle.  Full Article 

USL Board

USL Board

Diageo bars United Breweries from appointing independent director at United Spirits.  Full Article 

Amazon in India

Amazon in India

Amazon to sell packaged food and beverages in India - Economic Times.  Full Article 

iOS 8 Issue

iOS 8 Issue

iOS 8 causing Bluetooth connectivity issues - Apple news blog  Full Article 

NYT Job Cut

NYT Job Cut

New York Times to cut jobs as new products disappoint  Full Article 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Weak Demand

Weak Demand

Weak demand hits factory activity across Asia, Europe  Full Article 

Pimco Fund

Pimco Fund

Pimco Total Return Fund posts record $23.5 bln net outflow in Sept  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage