11 Apr '11, 1pm

Tata Chemicals to invest in Olam

Tata Chemicals to invest in Olam

SINGAPORE: Mainboard-listed Olam International said Tata Chemicals will invest US$290 million to acquire a 25.1 per cent stake in its Urea Manufacturing Project in the African Republic of Gabon. The port-based ammonia-urea fertiliser complex is being set up through a joint venture between Olam and the Republic of Gabon at an estimated project cost of $1.3 billion US dollars. As announced in November 2010, Olam was to have an 80 per cent stake in the project with the Republic of Gabon holding the remaining 20 per cent. Sixty-five per cent or US$845 million of the estimated capital cost is to be funded by non-recourse debt financing and the balance 35 per cent or US$455 million through equity investment by shareholders. With Tata's investment, Olam's shareholding in the project drops to 62.9 per cent while the Republic of Gabon will now hold 12 per cent. Correspondingly, Ola...

Full article: http://www.channelnewsasia.com/stories/singaporebusinessn...

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