Jay Shree Tea & Industries Ltd has entered into a share-purchase agreement with the owners of Kijura Tea Company Ltd., Bondo Tea Estate Ltd, to acquire 100% stake in the said companies. The said companies are having tea estates manufacturing around 1.2 mn kg tea per annum and a tea factory situated in the district of Kabarole in the State of Uganda. The possession of tea estates is expected to be effective from May 01, 2010.
The company has also entered into a 50;50 joint venture agreement with Rwanda Mountain Tea SARL, Rwanda in East Africa and has formed “Tea Group Investment Company Ltd.” (TGIC), through its offshore investment arm ‘Birla Holdings Ltd. at Dubai (BHL) to acquire 60% stake in Mata Tea Co. Ltd. and Gisakura Tea Co. Ltd., Rwanda, East Africa which was owned by OCIR-THE, the of Rwanda.
The said own two tea estates namely ‘Mata’ and ‘Gisakura’ in Rwanda, the best quality tea producing belt in East Africa producing 4.1 mn. kg of tea per annum. The Government of Rwanda has issued necessary notification for allotment of the said two tea companies to TGIC at a total cost of US$ 8.6 mn, out of which the share of BHL shall be 50% i.e. US $ 4.3 mn. (equivalent to INR 19.13 crore) and the formalities for acquisition shall be completed shortly.
The company has entered into a marketing tie-up with Rwanda Mountuin Tea SARL for the sale and marketing of 6 mn. kg. of tea per annum from its produce of existing tea estates.
This tie up shall be beneficial and in the long term interest of both the parties as Jay Shree Tea can leverage its existing marketing network to derive better values for Rwandan teas in the international market. Both the above acquisitions and marketing tie up will help the company in gaining control over 10 m kgs. of teas in Revanda – the best quality tea producing belt of East Africa.
The Company has acquired 100% stake in M.P.Chini Industries Ltd., having a sugar factory of 4600 TCD (being enhanced to 5500 TCD) at Majhaulia, Bihar at a consideration of Rs. 112.62 crores, with effect from April 01, 2010. The Company shall leverage its experience and expertise in managing agro based industries and harnessing the same for growth of all its stakeholders.
The stock was trading at Rs.294, down by Rs.14.15 or 4.59%. The stock hit an intraday high of Rs.306 and low of Rs.290.10.
The total traded quantity was 72706 compared to 2 week average of 67722.
