Calcutta, Sept. 13: Tata Chemicals is in an "advance stage of discussions and negotiations" with Calcutta-born NRI billionaire Sri Prakash Lohia's Indorama Corporation to sell its Haldia fertiliser plant for Rs 400-500 crore, the company said in a regulatory filing to the stock exchanges this evening.
The Tata company has entered into a mutually agreed exclusivity agreement with the Netherlands-based Indorama Holdings BV, a subsidiary of Indorama Corporation, Singapore, which would expire on October 31, 2017. The transaction will potentially include the sale of its phosphatic fertiliser unit in Haldia and the trading business comprising bulk and non-bulk fertilisers.
"The potential transaction would be subject to due diligence, agreement on the definitive documents and approvals from the board, shareholders and regulatory authorities as may be required, and there is no certainty of the transaction being completed.
"The transaction if materialised would involve the transfer of Haldia plant, trading business along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts. The company is expected to receive a consideration in the range of Rs 400 crore to Rs 500 crore," the notice to stock exchanges said.
The Telegraph had reported Lohia's interest in the Haldia unit of Tata Chemicals on April 20, 2017.
Haldia will not be an unknown destination for the Lohia family, which last year struck a deal with Calcutta-based Dhunseri Petrochem, promoted by Chandra Kant Dhanuka.
Thailand-based Indorama Ventures, managed by Sri Prakash Lohia's younger brother Aloke Lohia, took a 50 per cent stake in Dhanuka's pet resin business there.
The promoters' stake of Indorama Ventures is equally divided between Sri Prakash's and Aloke's families even as the latter has 76 per cent voting rights compared with 24 per cent of the elder brother.