Feb. 23, 2021
The Board of Directors of Zuari Agro Chemicals Limited at its meeting held on 22nd February, 2021, subject to the approval of shareholders and such other necessary approvals, consents, permissions and / or sanctions of the appropriate authorities, institutions or bodies as may be required, has approved the sale of Company's fertilizer plant at Goa and associated businesses of the Company to Paradeep Phosphates Limited (PPL) as a going concern, on a slump sale basis for an agreed enterprise value of USD 280 million as defined in the Business Transfer Agreement and for entering into necessary Business Transfer Agreement with PPL.
The revenue contributed by Goa Plant for the Financial Year 2019-20 was Rs. 199,923.39 lakhs which was 98.89% of the total revenue of the Company. The net worth of Goa Plant for the Financial Year 2019-20 was negative Rs. 65,015.38 lakhs.
The Enterprise Value of USD 280 million subject to customary adjustments for capex, cash, debt, cash-like items, debt-like items and working capital changes based on certain agreed parameters.
Paradeep Phosphates Limited (PPL) is a group company. PPL is the subsidiary of company's Joint Venture Zuari Maroc Phosphates Private Limited.
PPL plans to fund the acquisition amount partly (approx. INR 1000 crs) from Public issue and balance from loans & internal accruals. Outstanding amount by the Company to PPL and any loans of the Company that get transferred to PPL, would be reduced from the closing consideration.
Reported Standalone quarterly numbers for Zuari Agro Chemicals are:
Net Sales at Rs 559.59 crore in December 2020 up 164.32% from Rs. 211.71 crore in December 2019.
Quarterly Net Loss at Rs. 59.40 crore in December 2020 up 54.28% from Rs. 129.93 crore in December 2019.
EBITDA stands at Rs. 34.30 crore in December 2020 up 126.75% from Rs. 128.22 crore in December 2019.