Business Daily from THE HINDU group of publications
Saturday, Dec 02, 2006
ePaper
Business Daily from THE HINDU group of publications Saturday, Dec 02, 2006 ePaper |
|
|
|
|
|
|
|
Markets
-
Stocks Agri-Biz & Commodities - Mergers & Acquisitions Our Bureau
Agreement To acquire 1,520,000 equity shares of Moran India. The transaction values Moran Tea at Rs 273 per share. Mcleod Russel to pay a non-compete fee of £7,50,000 to Moran Holdings.
Kolkata , Dec. 1 Mcleod Russel India Ltd, a B.M. Khaitan group company, on Friday announced buying out Moran Holdings plc's controlling stake in Moran Tea Company (India) for Rs 41.49 crore.
Acquisition
A company release said that an agreement has already been signed for acquisition of 1,520,000 equity shares representing 72.38 per cent of the paid-up capital of Moran India. The transaction values Moran Tea at Rs 273 per share. The Rs 500-crore-plus McLeod Russel has also agreed to pay a non-compete fee of £7,50,000 to the UK parent of Moran India — Moran Holdings. Profit-making Moran India is a tea grower and manufacturer. It has four tea estates in Assam. It produces around 4.3 million kg of tea annually. The acquisition of controlling stake of Moran India will provide "synergy benefits in terms of cost reduction and pricing power, both in the export and domestic market", the release said. Through this acquisition, McLeod Russel will consolidate its leadership position in tea plantation business with an annual tea output of over 75 mkg. McLeod Russel, along with its associates, has also proposed an open offer to acquire up to 20 per cent of Moran India from the public shareholders. ICICI Securities Ltd has been appointed as the manager to the offer. The Khaitan groups would finance the acquisition through internal accruals of McLeod Russel and resources of some other group companies.
Board nod
The McLeod Russel board at a meeting here on Friday approved the acquisition of the stake in Moran Tea. The board also approved amalgamation of Doom Dooma Tea Co Ltd, the wholly-owned subsidiary of the company, with itself with effect from April 01, 2006, subject to necessary approvals. The stock closed on Friday up over 2 per cent at Rs 109.55 on the BSE. The paid-up capital of the company was at Rs 28 crore as on March 31, 2006.
More Stories on : Stocks | Mergers & Acquisitions | Tea
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|