Coromandel International Limited announced that its wholly-owned subsidiary Coromandel Chemicals Limited (CCL) will acquire an additional 8.82 per cent stake in Baobab Mining and Chemicals Corporation (BMCC) for $3.84 million. This acquisition will increase CCL’s shareholding in the Senegalese rock phosphate miner to 53.8 per cent from 45 per cent.
The shares of Coromandel International Limited were trading at ₹1,647.10, down by ₹15.80 or 0.95 per cent, on the NSE at 3.10 pm.
The deal involves purchasing 44,094 shares from existing shareholder Baobab Fertilizer Africa. CCL will also extend a loan of up to $6.50 million to BMCC for debt repayment, project expansion, and working capital needs.
Coromandel stated that this investment aims to strengthen its backward integration and secure its supply chain. The transaction is subject to approval from the Government of Senegal and is expected to be completed in the second and third quarters of FY 2024-25.
BMCC, incorporated in 2011, operates in Dakar, Senegal, and reported a turnover of ₹104.87 crore in 2023. The company mines and produces rock phosphate, a key raw material in fertilizer manufacturing.