In a large deal brewing in the chemicals & fertilisers sector, Saroj Poddar-led group is looking at reorganisation of its assets within the promoter group.
Sources with direct knowledge say that Zuari Agro Chemicals, parent of Mangalore Chemicals, is in talks with another group company Paradeep Phosphates to sell its stake in subsidiary Mangalore Chemicals. Zuari Agro had bought Mangalore Chemicals in 2015 and is now looking to sell shares and majority control to raise funds to repay debt, they said.
“Deal options include merging Mangalore Chemicals with Paradeep Phosphates,” the sources added.
Zuari Agro currently owns 54 percent stake in Mangalore Chemicals. Kolkata-based Saroj Poddar is at the helm of the promoter group which owns Zuari Agro, Chambal Fertilisers and Mangalore Chemicals. Paradeep Phosphates (PPL) is owned by Zuari Maroc Phosphates Pvt. Ltd. (ZMPPL), a joint venture between Zuari Agro Chemicals Limited (ZACL) and the OCP Group S.A.
PPL completed its Rs 1,500 crore initial public offering (IPO) last year. The company also used part of the proceeds to complete the acquisition of the 1.2 million MT fertilizer plant in Goa in June 2022. Post IPO, ZMPPL holds 56.10 percent in PPL.
Earlier, Zuari Agro was exploring the same deal with Chambal Fertilisers but aborted the plan as the deal was less tax efficient, sources indicate. Adventz Group did not offer a comment on queries regarding the deal talks.
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