Tata Chemicals sheds biofuels business in Mozambique
Photo by Steve Jurvetson (Flickr) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
Indian soda ash and sodium bicarbonate producer Tata Chemicals Ltd (BOM:500770) said Monday it has agreed to sell the 95% stake it holds in certain biofuel assets in Mozambique for USD 5.5 million (EUR 4.9m).
The Mumbai-based company’s unit Bio Energy Venture - 1 (Mauritius) Pvt Ltd has inked a definitive agreement with the buyer -- Rademan Janse van Rensburg. Under the terms of the contract, the latter will pay the purchase consideration on a deferred payment basis through end-2020, according to the statement.
The target, called Grown Energy Zambeze Holdings Pvt Ltd Mauritius, holds the 95% interest in the owner of the Mozambican biofuel plants Grown Energy Zambeze Limitada. The remaining 5% in GEZ Ltda are in the possession of founding member Rensburg.
The deal is subject to a number of customary conditions, the vendor noted.