McLeod Russel to sell Vietnam tea unit for USD 2.15 million
McLeod Russel India Ltd on Thursday said the company would sell its Vietnam unit, Phu Ben Tea Company Ltd, for USD 2.15 million. The company would sell the entity to TLK Agriculture Joint Stock Company (TLK).
The sale is expected to be completed by December 24, 2023, the company said in a regulatory filing.
McLeod Russel India said its wholly-owned subsidiary Borelli Tea Holdings Ltd will sell 100 per cent of its capital contribution in Phu Ben Tea Company Ltd (PBTCL) to TLK.
PBTCL had a contribution of approximately USD 3.6 million to McLeod Russel India's topline in the last financial year.
The sale of PBTCL is part of McLeod Russel's strategy to focus on its core business in India, said the company which has been facing financial challenges in recent years and selling non-core assets.
The company had, in August, agreed to sell 15 tea estates in Assam to electrode paste maker Carbon Resources for around Rs 700 crore in a deal that will help it pare debt.
The Kolkata-headquartered company currently has 33 tea estates in India, of which 31 are in Assam and two in West Bengal's Dooars region.
