Cyril Amarchand Mangaldas (CAM) has advised fertiliser company Coromandel Chemicals (CCL) and Coromandel International on their acquisition of an additional equity stake in Baobab Mining and Chemicals Corporation (BMCC) in Senegal.
Coromandel International will acquire an additional 8.82%, raising its total stake to 53.8% in BMCC. The deal includes a INR320 million (USD3.84 million) equity investment, alongside a INR540 million loan to support BMCC’s expansion projects and working capital requirements.
Partner Gautam Gandotra led the CAM team, with the assistance of principal associate Arnav Shah, senior associate Aseem Sahni and associate Divyashree Rao.
The Senegal government will retain a 10% stake in BMCC and the acquisition is contingent on the fulfilment of conditions, including government approval.
As part of the transaction, CCL has entered into a share-purchase agreement with Baobab Fertiliser Africa (BFA), an amendment to the earlier shareholders’ agreement with BMCC, BFA and other shareholders, and a loan agreement between CCL and BMCC.
BMCC mines rock phosphate, whch is a key raw material in the production of phosphoric acid that is used in various industries such as food processing, pharmaceuticals, and fertilisers.
