WebSify
Follow us on
Mail
Print

Coromandel International to acquire Liberty Phosphate

Source : BUSINESS_STANDARD
Last Updated: Fri, Jan 25, 2013 20:20 hrs

Hyderabad-based Coromandel International Limited, a fertiliser and crop protection company of the Murugappa Group, on Thursday signed a definitive share purchase agreement to acquire RR Dhamani-promoted Liberty Phosphate Limited (LPL).

Under the agreement, the company will purchase 56.28 per cent of the promoters stake in LPL at Rs 241 per share and further acquire 26 per cent stake from public at a price according to the takeover regulations prescribed by the Securities and Exchange Board of India.

The total cost of acquisition, including the share purchase through the open offer route, would be between Rs 348 crore and Rs 375 crore. The entire fund for this acquisition would be arranged from internal accruals, according to Kapil Mehan, managing director of Coromandel International. LPL is one of the largest single super phosphate (SSP) players in the country with an installed capacity of 960,000 tonnes spread among six plants. It commands a market share of 14 per cent. A couple of more plants of the company are also under execution, he said. With the acquisition of LPL, it’s total SSP capacity would rise to 1.2 million tonnes a year.

“This acquisition completes the full range of products that the farmer would require from our end,” A Vellayan, executive chairman of Murugappa Group, said. Apart from strengthening the geographical footprint of the company, the acquisition also helps de-risk the international volatility as LPL almost completely depends on local rock phosphate reserves among other inputs, he said.




blog comments powered by Disqus
most popular on facebook
talking point on sify finance