The Hindu Business Line : Godrej Tea to take over foods biz

Godrej Industries Ltd has announced that it has signed an agreement with Godrej Tea Ltd (GTL) to sell its foods business excluding the manufacturing facility at Wadala, Mumbai, for a total consideration of Rs 70 crore. According to the terms of the agreement, Godrej Tea will pay the company Rs 40 crore in cash and Rs 30 crore in the form of shares.

Godrej Industries and Godrej Tea also signed a shareholders agreement with IL&FS Investment Managers Ltd (IIML) by which IIML through the funds managed by it, namely, the Leverage India Fund and Sara Fund would invest Rs 60 crore in Godrej Tea so as to acquire a 40 per cent stake. Godrej Tea is proposed to be renamed as Godrej Beverages and Foods Ltd to reflect the combined business.

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