Bulk tea producer McLeod Russel India Ltd has disclosed its plan to sell its Vietnam subsidiary, Phu Ben Tea Company Ltd, to TLK Agriculture Joint Stock Company (TLK) for a sum of $2.15 million, as announced on Thursday.
As per a regulatory filing, the company has indicated that the sale is anticipated to be finalized by December 24, 2023.
McLeod Russel India Announcement:
McLeod Russel India has announced that its wholly-owned subsidiary, Borelli Tea Holdings Ltd, intends to transfer its entire capital stake in Phu Ben Tea Company Ltd (PBTCL) to TLK.
In the last fiscal year, PBTCL contributed approximately $3.6 million to McLeod Russel India’s revenue.
The decision to sell PBTCL aligns with McLeod Russel’s strategy to prioritize its core business operations within India. The company has encountered financial difficulties in recent years, prompting the divestiture of non-core assets.
Read more stories: Tata CLiQ Luxury’s Exclusive Good Earth Collaboration
In August, the company had reached an agreement to sell 15 tea estates in Assam to Carbon Resources, a manufacturer of electrode paste, for approximately INR 700 crore. This deal is expected to aid the company in reducing its debt burden.
The Kolkata-based company maintains a total of 33 tea estates in India, with 31 situated in Assam and two located in the Dooars region of West Bengal.
