Mcleod Russel signs deal to sell two tea estates for $12.6 mn

Mcleod Russel India Ltd, the Kolkata-based tea plantation company, has signed pacts to sell two tea estates in Assam for a combined $12.6 million.

Mcleod Russel will sell the Harchurah Tea Estate in the northeastern state of Assam to Kolkata-based Goodricke Group Ltd for $4.4 million in cash. While, the Bargang Tea Estate in Assam will be sold to Amgoorie India Ltd, a subsidiary of Goodricke Group Ltd, for $8.2 million in cash.

With the acquisition of Harchurah Tea Estate, Goodricke's volume of tea, which it makes in Assam, will expand. 

The deals are subject to completion of due diligence by the two buyers and certain approvals.

Atul Asthana, Managing Director and Chief Executive of Goodricke Group, said, "The total combined yield of the two gardens is 2.5 million kg. Harchurah, which is the smaller of the two with an average annual production of 0.8 million kg, was sold at a valuation of Rs 360 per kg, while Bargang was valued at Rs 350 per kg."

Incorporated in 1977, Goodricke is operating 17 tea gardens in West Bengal and Assam. The company is engaged in the cultivation and production of tea.