Tata Chemicals unit to sell stake in Gez Mauritius for $5.5 million

Tata Chemicals Ltd has entered into an agreement with Rademan Janse van Rensburg for sale of its entire stake in Grown Energy Zambeze Holdings, Mauritius (‘GEZ Mauritius’) for a consideration of US$ 5.5 million.

Tata Chemicals Ltd has informed the BSE that the company’s wholly owned subsidiary, Bio Energy Venture - 1 (Mauritius) Pvt. Ltd has entered into a Definitive Agreement (‘Agreement’) with Mr. Rademan Janse van Rensburg (‘Purchaser’) for sale of its entire stake in Grown Energy Zambeze Holdings Pvt. Ltd, Mauritius (‘GEZ Mauritius’) for a consideration of US$ 5.5 million subject to fulfilment of certain condition precedents laid down in the agreement (‘Closing Date’). As per the Agreement, the purchaser will discharge the above consideration on a deferred payment basis over a period of five years ending on December 31, 2020.

GEZ Mauritius is the holding company of Grown Energy Zambeze Limitada (‘GEZ Ltda’), which owns the company’s biofuel assets in Mozambique. The company, through its subsidiaries, owns 95% stake in GEZ Ltda. The purchaser, one of the founder members of GEZ Ltda. has been a shareholder since inception and currently holds the balance 5% ownership in GEZ Ltda. along with another investors.

Stock view:

Tata Chemicals Ltd ended at Rs. 340.65, up by Rs. 5.9 or 1.76% from its previous closing of Rs. 334.75 on the BSE.

The scrip opened at Rs. 344.95 and touched a high and low of Rs. 344.95 and Rs. 328.05 respectively. A total of 562082(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 8678.4 crore.

The BSE group 'A' stock of face value Rs. 10 touched a 52 week high of Rs. 525.7 on 23-Jul-2015 and a 52 week low of Rs. 324.9 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 375 and Rs. 324.9 respectively.

The promoters holding in the company stood at 30.98 % while Institutions and Non-Institutions held 47.48 % and 21.54 % respectively.

The stock traded above its 200 DMA.