Carbon Resources Wants To Acquire Mcleod Russell

A major tea company Mcleod Russel has seen a significant development in which a local electrode paste producer announced its intention to purchase the debt-laden firm.

Carbon Resources, a producer and exporter of carbonaceous raw material, has sent a letter of intent to Mcleod Russel's lenders. The intention was to purchase a controlling share of the company. It is owned by the financially troubled Williamson Magor group.

Sources claim that Mcleod Russel was offered equity in the form of Rs 300 crore upfront and a Rs 945 crore debt in the letter. Tea maker Mcleod Russel currently owes more than Rs 1,700 crore. McLeod informed that its lenders were looking into a resolution process according to the guidelines of the Reserve Bank of India.

Indian Bank, RBL Bank, Axis Bank, HDFC Bank, ICICI Bank, State Bank of India, UCO Bank, Punjab National Bank, Yes Bank, and IndusInd Bank are the lenders to the company.. Carbon Resources bought a 5.03% share in McLeod on Friday's open market, sending the stock up to Rs 28.35.

Mcleod Russel's scrip touched the Rs 34 upper circuit on Monday amid the takeover buzz. The promoters of this company, the Khaitan's hold just 6.2%.

Khaitan lost control over Eveready Industries, a dry cell battery manufacturer, earlier this year. The Burman family, promoter for FMCG maker Dabur India, took control and became the promoter. In July of this year, the Burmans were reclassified as promoters for Eveready.