The Board of Directors of Zuari Agro Chemicals at its meeting held yesterday has approved the sale of company's fertilizer plant at Goa and associated businesses of the company to Paradeep Phosphates Limited (PPL) on a slump sale basis for an agreed enterprise value of USD 280 million.

However, the decision is 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.

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. Rs 1000 croress) 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.