The board of directors of Coromandel International and its subsidiary Sabero Organics Gujarat Ltd (SOGL) approved the merger of SOGL with Coromandel.
Coromandel, along with its wholly owned subsidiary Parry Chemicals Limited and other Murugappa group entities, holds a 74.94% equity stake in Sabero. Public shareholders of Sabero will be issued shares in Coromandel in the ratio of 5 equity shares of
SSPA & Co., Chartered Accountants, Mumbai provided the independent valuation report and the fairness opinion was provided by Axis Capital Limited.
Kapil Mehan, managing director, commented, “The merger will not only enable the agrochemical business realize economies of scale but also enable Coromandel to leverage its distribution network to serve Indian farmers especially through the Mana Gromor retail stores.” Mehan also said the proposed merger will enable the agrochemical business to upgrade its product portfolio and compete in global markets.
Coromandel, India’s second-largest phosphate fertilizer producer, also posted third-quarter results, with consolidated sales totaling
Profit before tax for the quarter was
On a standalone basis, Coromandel reported sales of
Its Sabero Organics subsidiary posted sales of