Business Standard

Takeover scare for McLeod Russel as Carbon Resources picks up over 5% stake

The would-be acquirer makes non-binding offer to banks to settle the bulk tea producer's dues

Icra has downgraded the ratings of bank facilities of McLeod Russel India to [ICRA] B-/[ICRA] A4 from [ICRA] BBB-/[ICRA]A3
Premium

Carbon Resources bought more than five per cent in McLeod through open market operations

Ishita Ayan Dutt Kolkata
McLeod Russel, the largest bulk tea producer in India, is facing a takeover threat from Carbon Resources, a company manufacturing input materials for ferro alloys, aluminium and steel industries.

In a surprise move on Friday, Carbon Resources bought more than 5 per cent stake in McLeod from the open market. On the same day, it made a non-binding offer to McLeod’s lenders – in the middle of a debt resolution process – for a one-time settlement of dues.

“We sent a non-binding letter of intent (LoI) to the bankers of McLeod on Friday, saying that we would like to settle

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 19 2022 | 2:45 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com