Mcleod Russel has signed a memorandum of understanding (MoU) to sell its eight tea estates to MK Shah Exports (another tea producer) for a consideration of Rs 331 crore.
Mcleod Russel shares added 2.6 percent on Wednesday as the company has decided to dispose of certain tea estates in Assam to bring down its debt. They are also exploring sale of their other estates with other buyers.
The tea estates to be sold are Beesakopie Tea Estate, Raidang Tea Estate, Daimukhia Tea Estate, Samdang Tea Estate, Baghjan Tea Estate, Bordubi Tea Estate, Koomsong Tea Estate and Phillobari Tea Estate in the Doom Dooma district of Assam.
The combined grant area at these eight estates is 9,350 hectares and the areas under tea are 5,700 hectares. The combined workforce of these tea estates is 11,000, reports LiveMint.
The combined annual production of these tea estates are 10.5 million kg.