Yesterday night, Zuari Agro’s Baord gave its In-Principle approval for sale of fertilizer plant at Goa to Paradeep Phosphates Ltd (PPL) as a going concern.
This is being sold on a slump sale basis for an agreed enterprise value of $280 million.
Pradeep Phosphates is the subsidiary of its JV, Zuari Maroc Phosphates. It plans to fund the acquisition amount, approx. Rs.1000 crore from public issue and balance from loans & internal accruals. Outstanding amount by the company to PPL and any loans of the company that get transferred to PPL, would be reduced from the closing consideration.
The revenue contributed by Goa plant for turnover for FY20 was Rs.1999 crore or 99% of the total revenue though net worth of the Goa plant was (-)Rs.650 crore.
This deal is expected to be closed before Q2FY22.
The stock is deep in the green, rising from yesterday’s close of Rs.91.40 to an intraday high at Rs.108, not too far from its 20% UC of the day at Rs.109.65. Its 52-week high is at Rs.123.65.