Williamson, McLeod merger meet on October 31

The Brij Mohan Khaitan group is likely to merge the newly acquired Williamson Tea Assam into McLeod Russel India.

In a notice to stock exchanges, Williamson Tea Assam and McLeod Russel India have informed that a meeting of the boards would be held on October 31, to consider a proposal for merger.

The move would result in cost savings and sharing of debt.

McLeod Russel has Rs 400 crore of debt on its books while Williamson Tea Assam is debt-free.

The Williamson Tea Assam scrip today closed at Rs 146.05 on the Bombay Stock Exchange (BSE) and at Rs 147.05 on the National Stock Exchange (NSE).

The McLeod scrip closed at Rs 56.15 on the BSE and at Rs 55.50 on the NSE.

The Khaitan-Magor deal was struck for Rs 168.66 crore and the subsequent open offer for 20 per cent of the paid-up equity of Williamson Tea Assam was set at Rs 145 per share.

Subsequently, the company announced an open offer for 20 per cent of the paid-up equity of Williamson Tea Assam at Rs 145 a share, which cost around Rs 41 crore.

The open offer was made by McLeod Russel India, Williamson Magor & Co, United Machine Co, Ichamati Investments and Nitya Holdings & Properties.