Cyril Amarchand Mangaldas Advised Coromandel Chemicals On Acquisition Of Stake In Baobab Mining And Chemicals Corporation
Cyril Amarchand Mangaldas Advised Coromandel Chemicals On Acquisition Of Stake In Baobab Mining And Chemicals Corporation
Cyril Amarchand Mangaldas (CAM) advised Coromandel Chemicals Limited (CCL) and Coromandel International Limited (Coromandel) in the acquisition of an additional equity stake in Baobab Mining and Chemicals Corporation (BMCC), Senegal, Africa.
Coromandel will acquire an additional 8.82% equity stake in BMCC, taking its overall shareholding to 53.8%. Coromandel will invest USD 3.84 million (INR 32 crores) in BMCC, besides a loan infusion of USD 6.5 million (INR 54 crores) to fund expansion projects and meet working capital requirements.
The Government of Senegal (GOS) holds a 10% equity stake in BMCC. Coromandel's further acquisition is subject to the completion of the agreed conditions precedent, including receipt of approval from GOS.
For this transaction, CCL has entered into:
i. a share purchase agreement with Baobab Fertilizer Africa (BFA);
ii. an amendment to the earlier shareholders agreement with BMCC, BFA, and the other shareholders of BMCC; and
iii. a loan agreement between CCL and BMCC.
The transaction team at CAM was led by Gautam Gandotra, Partner, with support from Arnav Shah, Principal Associate; Aseem Sahni, Senior Associate; and Divyashree Rao, Associate.
The transaction document was signed on September 25, 2024, and closing is expected during the second and third quarters of FY 2024-25.
