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McLeod Russel unit to buy Vietnamese firm for $2 mil.
Tea producer McLeod Russel India Ltd. said last week its unit has agreed to buy Vietnam's Phu Ben Tea Company for US$2 million.
McLeod's unit, Borelli Tea Holdings, signed a deal on October 3 with Belgium-based SA SIPEF NV for acquisition of 100 percent equity stake in Phu Ben Company.
Borelli will also have to arrange a bank guarantee to secure repayment of an “inter-company balance” of $5.01 million granted by the Belgian company to Phu Ben, it said.
The money will be repaid by Phu Ben within three years, it added.
Phu Ben is engaged in growing, manufacturing and selling of tea and produces around 4.5 million kilograms of tea annually in its three processing factories.
McLeod Russel is also looking to enhance Phu Ben Tea’s annual tea producing capacity to six million kg in the next two years and to 12 million kg over the next four years, Indian newspaper The Economics Times said.
Thanhnien
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