Fertilizer producer Coromandel International Ltd on Thursday said it was acquiring 56.28% stake in Gujarat-based Liberty Phosphate for Rs 348-375 crore.
Coromandel has entered into a share-purchase agreement with Liberty to buyout stake at Rs 241 per share. The proposed stake acquisition will include both promoter’s stake and an open offer to acquire 26% from the market.
“We will fund the transaction from internal accruals and it will not need any debt,” said Kapil Mehan, Managing Director, Coromandel International.
A Vellayan, Executive Chairman, Murugappa Group said the transaction was part of the strategic plan to expand the product range.
Coromandel also signed a separate agreement to acquire 100% stake in Libery Urvarak. A term sheet to acquire the business undertaking of Tungabhadra Fertilisers and Chemical Company through a slump sale is also in place.
Meanwhile, Coromandel’s net profit plunged 48.6% at Rs 68.65 crore for the quarter ended December, 2012 as against Rs 133.56 crore registered in the same period a year ago. Its sales too fell 9.8% at Rs 2,308.94 crore from Rs 2,560.98 crore last year.
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