Mcleod Russel to merge Doom Dooma Tea Company

Mcleod Russel India Ltd has announced that the Board of Directors of the Company at its meeting held on December 01, 2006, inter alia, has approved the following:

1. Amalgamation of Doom Dooma Tea Company Ltd, the wholly owned subsidiary of the Company, with the Company with effect from April 01, 2006 subject to necessary approvals.

2. Acquisition of 15,20,000 Equity Shares of Rs 10/- each representing 72.38% of the Share Capital of The Moran Tea Company (India) Ltd from Moran Holdings PLC., U.K., at a price of Rs 273/- per Share aggregating to Rs 41,49,60,000/- and a non-compete fee of GBP 7,50,000 subject to necessary approvals.

3. Making an Open Offer alongwith its associates to the Public Shareholders of The Moran Tea Company (India) Ltd offering to acquire upto 20% of the Shares of the said Company pursuant to SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. The Board has approved the appointment of ICICI Securities Ltd as the Manager to the Open Offer.

Source : Equity Bulls

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