Cyril Amarchand Mangaldas (CAM) advised Coromandel Chemicals Limited (CCL) and Coromandel International Limited (Coromandel) in acquisition of additional equity stake in Baobab Mining and Chemicals Corporation (BMCC), Senegal, Africa. Coromandel will acquire an additional 8.82% equity stake in BMCC, taking its overall shareholding to 53.8%. Coromandel will invest USD 3.84 million (INR 32 cores) in BMCC, besides loan infusion of US$ 6.5 million (INR 54 crores) to fund expansion projects and meet working capital requirements.
The Government of Senegal (GOS) holds a 10% equity stake in BMCC. Coromandel’s further acquisition is subject to the completion of the agreed conditions precedent including receipt of approval from GOS. For this transaction, CCL has entered into (i) a share purchase agreement with Baobab Fertilizer Africa (BFA); (ii) an amendment to the earlier shareholders agreement with BMCC, BFA and the other shareholders of BMCC; and (iii) Loan agreement between CCL and BMCC.
The transaction team was led by Gautam Gandotra, Partner; with support from Arnav Shah, Principal Associate; Aseem Sahni, Senior Associate; and Divyashree Rao, Associate.
The transaction document was signed on 25th September, 2024 and closing is expected to be during the second and third quarter of FY 2024-25.