Bulk tea producer McLeod Russel offered Rs 1,250 crore takeover bid by Carbon Resources

The largest bulk tea producer in India, McLeod Russel, is facing a takeover bid from Jalans-owned Carbon Resources. The bid submitted by Carbon Resources is reportedly worth Rs 1,250 crore. The Kolkata-based company, which deals in graphite and other critical carbonaceous raw materials, had earlier bought just over 5 per cent stake in McLeod Russel in the open market. The news of the stake sale sent the price of McLeod Russel’s stock soaring on the stock exchanges. From Rs 24.15 on 15 September, the share of the tea producer reached Rs 34.25 on the National Stock Exchange (NSE) on 19 September. McLeod Russel is part of the Williamson Magor Group. Details of the offer: McLeod Russel has been facing debt issues for a while now. To pay off its lenders, the company had to sell about 18 tea gardens between 2018 and 2020. The BM Khaitan family, which is the promoter of the company, owned 6.25 per cent stake as of June 2022 in the tea producer. McLeod is facing a debt of about Rs 1,700 crore, which Carbon Resources would like to settle as per its non-binding Letter of Intent sent Friday. Carbon Resources has stated that it will make an upfront cash payment to creditors worth Rs 1,250 crore. It will also pay in full to secured creditors and over 55 per cent unsecured creditors. The final call over the takeover will be taken by the lenders. As per reports, Carbon Resources has initiated discussions with the majority of the lenders. The secured lenders of McLeod are the State Bank of India, Punjab National Bank, ICICI Bank and UCO Bank. Yes Bank, Axis Bank, HDFC Bank and RBL are among the unsecured creditors. Carbon Resources has indicated to McLeod that it will acquire a controlling stake in the tea producer and make changes to its management and board. The company’s financial woes: The Williamson Magor Group had recently lost control of its brand Eveready to Burmans, the owners of Dabur India. Another company under its wings, McNally Bharat, is going through an insolvency procedure. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.