Khaitan buyout cheers Williamson Tea

DALAL STREET SPIKES

Williamson Tea gained on buyout news. The stock of the tea company jumped 4.79 per cent to Rs 153.55 on reports that McLeod Russel, Brij Mohan Khaitan's tea company, will acquire 70 per cent stake in Borelli Tea Holdings Ltd, UK, the holding company of Williamson Tea Assam.

The stock in intra-day trades touched a high of Rs 166 before closing at Rs 153.55. More than 1.3 lakh shares were traded at the counter on BSE on Monday.

The move will make the Brij Mohan Khaitan group the world's largest integrated bulk tea company with a production of 62 million kg, a status enjoyed by the group prior to its split.

Williamson Tea Assam has 17 tea gardens with a production of 20 million kg. The move to expand the plantations business is contrary to recent developments in FMCG companies such as Tata Tea and Hindustan Lever, which are selling their plantation business.