Coromandel International Limited has bought out the 25 per cent

Coromandel International Limited has bought out the 25 per cent equity holding of IFFCO in Godavari Fertilisers and Chemicals Ltd (GFCL), for a total consideration of Rs 120 crore.

IFFCO (Indian Farmers Fertiliser Cooperative Ltd) offloaded nearly 80 lakh equity shares held by it in GFCL, at a price of Rs 150 per share. This has been done in accordance with the share purchase agreement of January 23, 2007.

Coromandel, now part of the Murugappa Group, has also made the statutory open offer to the shareholders of GFCL at the same price and acquired additional 4.85 per cent stake, taking their total shareholding in GFCL to 74.92 per cent.

GFCL was formed as a joint venture company between the Government of Andhra Pradesh and IFFCO in December 1981.

The AP Government subsequently divested its stake in the company to Coromandel, through a divestment process in July 2003, according to a press release from the $1.6-billion Murugappa Group here today.

GFCL, which has so far been a joint venture between IFFCO and Coromandel, has now transitioned completely into the fold of Coromandel with IFFCO getting a good return on their investment, the release added. GFCL has a major fertiliser plant at Kakinada in coastal Andhra Pradesh.

Post this development, the two companies shall continue to work towards the betterment of the fertiliser industry in the country and explore areas of mutual cooperation to improve the lot of the farmer.

Kotak Mahindra Capital Company Ltd acted as the exclusive financial advisor for the transaction, the release said.