Tata Chemicals up over 3 pc on bourses post acquisition

MUMBAI: Tata Chemicals today rose by over 3 per cent in the morning trade on BSE, buoyed by the company's acquisition of 25.1 per cent stake in ammonia urea fertiliser complex at Gabon in Africa.

Cheering the move, the stock rose by 3.41 per cent to Rs 366.60 a share on Bombay Stock Exchange(BSE). Similarly, on National Stock Exchange, the scrip went up by 3.84 per cent to Rs 369 a share.

On Monday, Tata Chemicals--- the world's second-largest producer of soda ash with presence in India, Kenya, the UK and the US---acquired 25.1 per cent stake in the ammonia-urea fertiliser complex at Gabon in Africa for USD 290 million.

The fertiliser complex, with a production capacity of 1.3 million tonnes per annum, is being set up through a joint venture between Olam and the Gabon government at an investment of USD 1.3 billion. In the JV, Olam held 80 per cent stake while the Gabon government owned the rest.

After Tata Chemicals' acquisition of 25.1 per cent stake, Olam and Gabon's shareholding would reduce to 62.9 per cent and 12 per cent, respectively.

Meanwhile, the BSE benchmark index Sensex was trading higher by 164.72 points at 19,427.26 level at 10:44 hrs.