This is to inform you that the Company has completed the sale and disposal of its Phosphatic Fertilisers business and the Trading business comprising bulk and non-bulk fertilisers ('Divestment Business'), by way of a slump sale on a going concern basis, to IRC Agrochemicals Private Limited ('IRC') after the receipt of requisite regulatory approvals and fulfilment of Conditions Precedent as contemplated in the Business Transfer Agreement ('BTA') dated November 6, 2017.
The Company has received a consideration of Rs. 872.84 crores (subject to usual post completion adjustments) from IRC today, i.e. June 1, 2018. The consideration includes Rs. 572.76 crores in cash and the balance by way of letters of credit / bank guarantees. Subsidy receivables were not included in the transaction.
Thus, on completion of the transaction, the Divestment Business of the Company pursuant to the BTA stands transferred to IRC effective June 1, 2018.