Chandhiok & Mahajan advised & acted for Indorama on INR 2649 crore (USD 354m) acquisition Grasim Industries

Chandhiok and Mahajan advised & acted for Indorama on INR 2649 crore (USD 354m) acquisition Grasim Industries

Chandhiok and Mahajan advised & acted for its long standing client Indorama India on its INR 2649 crore (USD 354m) acquisition of the fertiliser business of Grasim Industries limited. The acquisition involves the sale and transfer of Grasim's urea fertilizer business (Indo Gulf Fertilisers) on a slump sale basis through a Scheme of Arrangement.

The transfer of the business will be for a lump-sum cash consideration of Rs. 2,649 Cr., to be paid by IIP to Grasim. This consideration is commensurate to the strength and future potential of the business.

Indo Gulf Fertilisers is engaged in manufacturing, trading, and sale of urea and other agri-inputs with a 1.2 Mn TPA Urea manufacturing plant at Jagdishpur in Uttar Pradesh. The divestment of the Fertiliser Business is a significant value unlocking exercise for Grasim. It will further enable the Company to pursue growth opportunities in its core businesses.

Speaking on the transaction, Mr. Dilip Gaur, MD Grasim Industries Ltd said "The divestment of the Fertiliser business by Grasim is a strategic portfolio choice and unlocks value for the shareholders. It is in line with the strategic thrust of the Company to focus on core businesses. Indo Gulf Fertilisers is synonymous with strong performance and high sustainability standards. To take it to the next level in size and value, the company is pleased to have found in Indorama Corporation, a credible fertiliser player to own IGF. IGF will benefit from synergies and expertise of Indorama Corporation's existing agri portfolio.

" Mr. Amit Lohia, Vice Chairman of Indorama Corporation, said, "We are pleased that with this acquisition, Shaktiman and the Paras brands will be able to join hands to offer a complete range of products for our farmers including urea, phosphate fertilisers, potash, soil health products, seeds, and crop protection products. We are excited about this union and believe it will facilitate greater access and development of high quality agri inputs for the farming community."

The Fertiliser Business shall be transferred to IIP on slump sale basis, pursuant to a scheme of arrangement. The lump sum consideration is subject to certain adjustments as agreed between the parties in terms of the definitive agreement and the Scheme. The transaction is subject to the necessary statutory and regulatory approvals including approvals of the NCLT, the Stock Exchanges, SEBI, Competition Commission of India (CCI), the respective Shareholders and lenders / creditors of each of the companies.

 Chandhiok & Mahajan team was led by Managing Partner Pooja Mahajan, Partner and Head of Corporate Sujoy Bhatia, Managing Associate Lovejeet Singh, Senior Associate Pallavi Railkar and Associates Jagrat Rawal, Aayushi Jain and Savar Mahajan. Partner and Head of Competition Karan Chandhiok and Counsel Deeksha Manchanda advised on the competition law aspects of the transaction.

Grasim was advised by Cyril Amarchand Mangaldas.

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