Kolkata, June 5 (IANS) World’s largest tea producer McLeod Russel India on Tuesday signed an MoU with city-based M.K Shah Exports Ltd to dispose of eight tea gardens in Assam for a consideration of Rs 331 crore.
The company decided to dispose of certain tea estates in Assam, namely Beesakopie, Raidang, Daimukhia, Samdang, Baghjan, Bordubi, Koomsong and Phillobari.
“…the company has entered into a Memorandum of Understanding with M. K. Shah Exports Limited, having registered at Kolkata on June 5, 2018,” the tea producer said in a regulatory filing.
These gardens contributed Rs 192.76 crore to its turnover in the last fiscal, which was over 12 per cent of its last year’s revenue.
“The company proposes to utilise the sale proceeds in repayment of certain high interest bearing debts, for buying back company’s own shares from the shareholders of the company to the tune of Rs.100 crore…and making investment for diversification into packet tea business,” the company had said earlier.