Unilever, Lipton sell Rossell stake

MK Shah Exports buys 97.5% stake in Rossel; Rossell Ind will cease to be a unit of HLL.

Unilever has pulled out of tea company Rossell Industries by offloading its 97.5 per cent stake for an undisclosed sum.

Unilever Overseas Holdings BV, the Netherlands-based wholly-owned subsidiary of Unilever Plc, and Lipton India Exports, a wholly-owned subsidiary of Hindustan Lever, have sold off 3,700,000 shares and 6,185,000 shares, respectively, of Rossell Industries nearly six-and-half years after acquiring the tea company.

MK Shah Exports, a leading exporter and tea plantation firm, has purchased the shares, representing 97.5 per cent stake in Rossell Industries, from the Unilever firms. A media statement released by Hindustan Lever said the remaining 2.5 per cent was held by a handful of local shareholders.

"With the conclusion of this transaction, MK Shah Exports will now assume control of Rossell Industries. Rossell Industries will cease to be a subsidiary of Lipton India Exports and consequently of Hindustan Lever," the media statement said.

It added that in view of the significant losses built up over the years, "the transfer consideration is nominal and therefore not 'material' in the context of Hindustan Lever".

According to the release, the interests of the employees will be fully protected as they continue to remain employees of Rossell Industries in the existing terms and conditions.

Rossell had come into the Unilever fold in November 1999, consequent to the acquisition of non-resident interests of Jokai Tea Holdings and Lipton India Exports Limited taking over the shareholding from YK Modi group.

This was followed by open tender offer.