Companies

Jay Shree Tea to sell two estates in Africa to Belgium firm for ₹71 crore

Our Bureau Kolkata | Updated on January 17, 2020 Published on January 17, 2020

 

Jay Shree Tea and Industries Ltd , a BK Birla group outfit, has entered into a definitive agreement with Grand Lacs Trading SA, Belgium to sell its stake in two of its tea estates in East Africa at an estimated consideration of ₹71 crore.

The two estates — Mata and Gisakura — together contributed ₹25.96 crore to the company’s total turnover in 2018-19. The net worth contribution was close to ₹381.94 lakh during the year.

“The company has entered into a definitive agreement with Grand Lacs Trading SA, Belgium to sell its stake in two of its tea estates in East Africa, namely Mata and Gisakura,” the company said in a notification to the NSE on Friday.

The sale is expected to be completed by February 14. No amalgamation or merger will take place in relation to the proposed transaction, the notification said.

The company’s board had recently taken an in-principle decision to monetise certain tea estates and other assets to pare debt. Jay Shree Tea is estimated to have debt of around ₹400 crore as on date. It plans to use the proceeds from such sale to consolidate and strengthen its financial position, including containment and optimisation of liabilities, including borrowings, as a concrete step towards improvement of the overall performance of the company.

Published on January 17, 2020
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