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:

Reuters Showcase

IS Claim

IS Claim

Islamic State says beheads second Japanese hostage.  Full Article 

Ukraine Crisis

Ukraine Crisis

Death toll mounts in Ukraine fighting after peace talks fail.  Full Article 

Fifth Title

Fifth Title

Djokovic reigns supreme at Australian Open.  Full Article 

Journalist Freed

Journalist Freed

Jailed Al Jazeera journalist Peter Greste leaves Egypt for Australia.  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut.  Full Article 

Doubles Title

Doubles Title

Hingis wins Australian Open mixed doubles title with Paes.  Full Article 

Houston's Daughter

Houston's Daughter

Bobbi Kristina Brown revived after found unresponsive in tub  Full Article 

Supply Glut

Supply Glut

Sugar mills seek govt help to dispose of supply surplus.  Full Article 

Reuters India Mobile

Reuters India Mobile

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