By
Avantha set to sell agrochemicals unit; Statkraft eyes IL&FS’ green energy assets
Photo Credit: Thinkstock

Gautam Thapar-led Avantha Group is likely to sell agrochemicals unit Solaris ChemTech to Agrocel Industries, part of Shroff Group of Companies, The Economic Times reported.

Citing multiple sources with knowledge of the matter, the report said the deal value is likely to be about Rs 800 crore. Avantha is selling its non-core businesses to repay debt, it added. Avantha has total debt of more than Rs 12,500 crore.

The report also said that a definitive agreement is likely to be signed in the coming week and that an announcement is possible before year-end.

Avantha had sold the chlor-alkali and phosphoric acid divisions of Solaris to Aditya Birla Group in May 2013. Solaris now has bromine manufacturing and distribution business. Avantha had previously agreed to sell the remaining company to US-based Chemtura Corporation but the deal later fell through.

In another development, Norwegian state-owned company Statkraft has shown interest in acquiring the renewable energy assets of IL&FS, The Times of India reported.

Infrastructure investor I Squared Capital, private equity firm Actis, Macquarie and Hinduja Group are also likely to bid for the assets, the report said, without specifying where it got the information from.

On Wednesday, the Uday Kotak-led board of IL&FS invited expressions of interest for renewable energy assets worth over Rs 8,000 crore. 

The assets include operating wind power plants with aggregate capacity of 874 megawatt, underconstruction wind projects with total capacity of 104 MW and solar projects of 300 MW.

Meanwhile, Tata Communications has shelved a plan to buy group company Tata Teleservices Ltd's enterprise business, The Economic Times reported.

Citing top officials in the Department of Telecommunications and Tata Group, the report said that group holding company Tata Sons has informally told the government that it was not keen on the deal now and would instead focus on strengthening the balance sheet of Tata Communications.

The government owns a 26% stake in Tata Communications, earlier known as Videsh Sanchar Nigam Ltd.

Tata Sons would now need to again explore selling Tata Teleservices' enterprise business to an external buyer. Previously, private equity firm TPG Capital, along with former Tata employee Mukund Rajan, had offered $1 billion for the enterprise unit. The group had reportedly rejected the offer. 

Leave Your Comment(s)