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

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

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

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