Source: Moneycontrol.com
Company has entered into another MoU with OCP for a proposed strategic investment in Zuari FarmHub Ltd (ZFHL).
Shares of Zuari Agro Chemicals gained 5 percent intraday on November 14 after the company signed Memorandum of Understanding (MoU) with Morocco-based OCP Group for the reorganisation of the fertiliser business.
“Zuari has signed an MoU with OCP Group in connection with such corporate reorganisation and leveraging on their existing partnerships. This will entail a consolidation exercise including all fertilizer entities of Zuari’s,” the company said in its BSE filing.
The company further said it has entered into another MoU with OCP for a proposed strategic investment in Zuari FarmHub Ltd (ZFHL).
ZFHL will take over Zuari’s existing retail, speciality nutrients, crop care, seeds activities, as well as, the manufacturing operations of Baramati Specialty Nutrients plant, and will also be spearheading the company’s plans to set up hubs across the country, it added.
“The terms and conditions of the proposed strategic investment by OCP in ZHFL, whether primary and/or secondary, will be discussed and finalised over the next few months between Zuari and OCP,” the company said.
Zuari and OCP Group have had a long and successful partnership of over 17 years through their joint holding in ‘Paradeep Phosphates Ltd’.
“The signing of these MoUs is an expression of the willingness of both parties to expand their association covering both bulk and non-bulk fertilizer businesses and resulting in a stronger partnership between Zuari and OCP Group,” the company said, adding both MOUs are non-binding in nature.The stock was quoting at Rs 93.00, up Rs 4.75, or 5.38 percent on the BSE at 1428 hours IST.
