McLeod Russel, bulk tea producer, announced that it has executed an agreement with Luxmi Tea Company for sale of three of its tea gardens in Assam at an estimated consideration over Rs 150 crore.
The company said during the regukatory filing, “The company has executed an agreement for sale of specified assets of Addabarie, Mahakali and Dirai Tea Estate of the company, with Luxmi Tea Company on April 22, 2019, subject to approval from appropriate authorities.”
McLeod Russel said it has executed an agreement for the sale of specified assets of Addabarie Tea Estate, Mahakali Tea Estate and Dirai Tea Estate. The sale is subject to approval from appropriate authorities. The three estates collectively contributed close to Rs 77 crore to the company’s turnover in 2017-18.
Luxmi Tea, having its registered office at Kolkata, is engaged in growing, manufacture and sale of tea.
The company also added, “The company had entered into a non-binding term sheet with Saffron Enclave inter alia for the sale of specified assets of the aforesaid three estates, which has expired on 31st March, 2019.”
The company, which has been pruning down gardens, had earlier proposed to utilise the sale proceeds in repayment of certain high interest bearing debts and also for making investment for diversification into the packet tea business.
In the last month, tea major’s wholly owned subsidiary Borelli Tea Holdings had sold its equity stake in Gisovu Tea Co in Rwanda.