Aditya Birla Nuvo Ltd will hive off its carbon black business by way of slump sale to SKI Carbon Black (India) Private Ltd, an Aditya Birla Group Company, for a lumpsum consideration of Rs 1,451 crore as enterprise value.

The decision was taken since ABNL's carbon black business accounted for a mere 2 per cent of the global industry capacity.

In a statement to the stock exchanges, ABNL said the company’s committee of directors, which on April 6 reviewed the carbon black business both in India and abroad, felt that the global tyre producers wanted to engage with carbon black players who have global delivery capabilities, scale and global positioning.

Aditya Birla Nuvo's carbon black business accounted for just 2 per cent of the global industry capacity and in view of ABNL's capital commitment for its other businesses, it was very challenging for the company to become a global carbon black player.

Due to these reasons, the committee of directors decided to divest the carbon black business, on a going concern basis, by way of slump sale to SKI Carbon Black. The enterprise value was based on an independent valuation done by Deloitte Touche Tohmatsu India Private Ltd, Mumbai.

ABNL said that the cash inflow from the divestment will help cut debt and support growth plans and ensure greater focus on the other businesses of the company.

The shares of Aditya Birla Nuvo were trading at Rs 963.90, up by Rs 1.60, in the opening minutes of trading on the BSE.

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