Cyril Amarchand Mangaldas advised Coromandel International on acquisition of 45 percent Stake in Baobab Mining and Chemicals Corporation in Senegal, Africa

Mumbai: Cyril Amarchand Mangaldas advised Parry Chemicals Limited (Parry Chemicals), a wholly owned subsidiary of Coromandel International Limited (Coromandel) on its acquisition of 45% equity stake of Baobab Mining and Chemicals Corporation (BMCC) from Baobab Fertilizer Africa (BFA), an existing shareholder of BMCC, for a consideration of INR 225 crores. The Government of Senegal will also hold a 10% equity stake in BMCC. PCL’s acquisition is subject to the completion of the agreed conditions precedent including receipt of approval from the Government of Senegal.

The General Corporate (M&A) Practice of Cyril Amarchand Mangaldas advised Parry Chemicals on the Transaction. The Transaction team was led by Gautam Gandotra, Partner; with support from Arnav Shah, Principal Associate; and Anushka Sharma, Associate.

Other Parties and Advisors to the transaction included Stanhope Capital LLP (acted as Financial Advisors to BFA & BMCC); Popular Legal (acted as International Law firm to BFA & BMCC); and B S R & Co. LLP (acted as tax and regulatory advisors).

As a part of the Transaction, Parry Chemicals has entered into a share sale agreement with BFA; and a shareholder’s agreement with BMCC, BFA and the other shareholders of BMCC. Parry Chemicals has also agreed to extend a shareholder loan to BMCC for capital projects and expansion.

The Transaction was signed on 6th May, 2022. The deal is expected to close in the second quarter of FY 2022-23.

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