Tata Chemicals Ltd said on Wednesday it is in advanced stages of negotiations to sell its phosphatic fertiliser business and the trading business comprising of bulk and non-bulk fertilisers to Singapore’s Indorama Corp.
The Tata Group company said in a stock-exchange filing that it expects to receive Rs 400-500 crore ($62-78 million) by selling the businesses.
The proposed transaction involves the sale of its Haldia factory, which makes phosphatic fertilisers, as well as the trading business along with immovable, movable properties, working capital and product brands.
Tata Chemicals also said that its exclusivity agreement with Indorama Holdings BV, Netherlands, a subsidiary of Indorama Corp, for the in this regard expires on 31 October and that there is no certainty of the transaction being completed.
The potential transaction would be subject to due diligence, agreement on the definitive documents and approvals from the board, shareholders and regulatory authorities, it added.
The development comes a year after Tata Chemicals sold its urea business to a local unit of Norwegian firm Yara International ASA for Rs 2,670 crore ($400 million).