Mcleod Russel, a wholly owned subsidiary of Borelli Tea Holdings, has acquired the equity stake in Uganda-based Rwenzori Tea Investments.
In December last year, Borelli Tea had signed a Share Purchase Agreement with James Finlay and James Finlay International for the acquisition of 100% of the share capital of Rwenzori Tea Investments, Uganda (Rwenzori) for a provisional consideration of $25m. The acquisition is expected to give Mcleod a presence in Uganda, which could lead to possible expansion in future.
Rwenzori holds 100% of the equity capital of James Finlay (Uganda) Ltd (JFUL) engaged in growing, processing and marketing of black tea. JFUL has six tea estates with annual production of around 15 million kgs of black tea.
Mcleod Russel has tea estates in the North East Indian states of Assam and West Bengal, and it has recently acquired three estates in Vietnam.
Source: Drinks Business Review