Coromandel Fertilisers acquires IFFCO''s stakes in Godavari Fertilisers
18 Apr 2007
Chennai: Coromandel Fertilisers Limited, part of the $1.6-billion Chennai-based Murugappa group, has acquired a 25-per cent equity (80.01 lakh shares) held by Indian Farmers Fertiliser Cooperative Limited (Iffco) in Godavari Fertilisers and Chemicals Limited for Rs150 per share.
The purchase is in pursuant to the share purchase agreement signed between Coromandel Fertilisers and Iffco. The total price works out to Rs120 crore.
Making an open offer to the shareholders of Godavari Fertilisers at the same price Coromandel Fertilisers acquired additional 4.85 per cent stake. With this the total shareholding of Coromandel Fertilisers in Godavari Fertilisers goes up to 74.92 per cent.
Godavari Fertilisers was formed as a joint venture company between Government of Andhra Pradesh and Iffco in December, 1981. Subsequent the Andhra government divested its stake in Godavari Fertilisers in July, 2003.
Kotak Mahindra Capital Company Limited acted as the exclusive financial advisor for the above transaction.