United Phosphorus Limited (UPL) is in talks with a Japanese private equity fund to jointly bid for Arysta LifeScience Corporation, the world’s largest privately held crop protection and life science firm.
UPL is among six shortlisted bidders expected to put in their bids this month. The others are Israel’s Makhteshim Agan, Australia’s Nufarm and private equity funds such as Advantage Partners, Bain Capital and Permira.
Olympus Capital, owner of Arysta, is expected to generate $2 billion (about Rs 7,830 crore) from the sale which is nearly double the turnover of 124.1 billion yen (or about Rs 4,130 crore) that the company registered last year.
UPL is also preparing to bid alone just in case it does not manage to find a partner.
For this the company has already chalked out plans to raise $ 500 million (about Rs 1,960 crore) through an equity issue.
The remaining $1.5 billion (about Rs 5,870 crore) may be raised through a mix of recourse and non-recourse financing. UBS, the company’s advisor for the bid, will organise the fund if and when it is needed.
Read more in The Business Standard article.
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