Bulk tea major McLeod Russel (India) Ltd today decided to hive off some of its tea estates and decided to buyback shares at a price not exceeding Rs 210 per share upto an aggregate outgo of Rs 100 crore.
The company in the regulatory filing said that indicative maximum number of shares that would be bought back is 47,61,904 shares or 4.35 per cent of the equity shares of the company.
Further details of the buy back will be announced soon, the company said.
The company claimed that there was need to rationalise its own tea production as it is disproportionate compared to the share of leaves bought from small gardens and production by step-down overseas subsidiaries.
The company produces 67 million kgs of tea.
The company said it has set up a committee to identify certain tea estates that would be hived off. The sale proceeds would be used for repay its debt.
According to reports, at least five tea estates would be sold and dialouge was already on.
McLeod Russel today closed at Rs 154, 1.15 per cent higher on BSE.
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