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Bisnauth Tea, Eveready boards to discuss merger

Our Bureau

CALCUTTA, Dec. 12

THE proposal of an amalgamation of Bisnauth Tea Company Ltd with Eveready Industries India Ltd is on the agenda for the meetings of the boards of the two B.M. Khaitan group companies to be held here on December 14. Both Bisnauth and Eveready informed sto ck exchanges on Tuesday about the move.

Eveready and Bisnauth have been in the news in recent times for the same reason -- sale of some tea estates to retire debt and thereby to reduce the interest burden. While Eveready has announced deals for the sale of six gardens, Bisnauth is yet to concl ude any deal. Both have called EGMs on December 22 to obtain shareholders' approval.

The proposal, if approved by the respective boards, will mark the B.M. Khaitan group's attempt to consolidate the tea business. The group holds, through several outfits and associates, 44 per cent in Eveready and a little over 75 per cent in Bisnauth. Th e paid-up capital of Eveready is Rs 36.19 crore, while Bisnauth has a paid-up capital of Rs 14.69 crore.

George Williamson (Assam) Ltd, the third tea company, is controlled to the extent of 70 per cent by the Magors of the UK. Incidentally, it may be mentioned that George Williamson (Assam), which has 17 estates, all in Assam, is likely to be the buyer of t he Bisnauth estates that are to be sold.

After the deals for the sale of six gardens, Eveready is now left with 19 gardens -- 13 in Assam and six in Dooars of West Bengal. As of now, Bisnauth has 15 estates, all in Assam.

After the respective boards approve the proposal for amalgamation of Bisnauth with Eveready, shareholders' meetings will be held under the direction of courts.

According to available indications, the enlarged tea business of Eveready is likely to be separated under a new company. When that happens, Eveready will be left only with the battery business.

As for the battery business, it may be mentioned that at the last AGM of Eveready held on September 29, 2000, shareholders approved a resolution to reorganise the battery operations ``by transfer to one or more separate companies, new or existing, with p articipation of strategic partners / investors with international connections''.