Khaitans gets tea fraternity support to foil Carbon Resources takeover bid for McLeod

In a twist to the ongoing Carbon Resources takeover bid for McLeod Russel, another tea company MK Shah Exports has approached the lenders extending its support to the existing promoters in the restructuring plan with Khaitans.The bankers met on Thursday and took note of the two letters of intent received for McLeod Russel that expressed interest in the companys restructuring.

In a twist to the ongoing Carbon Resources takeover bid for McLeod Russel, another tea company MK Shah Exports has approached the lenders extending its support to the existing promoters in the restructuring plan with Khaitans.

The bankers met on Thursday and took note of the two letters of intent received for McLeod Russel that expressed interest in the company's restructuring. Sources said the matter is at a very fluidic state and they will meet again later to consider the offers, if required.

''We wish to stand for the existing promoters of McLeod Russel due to our long standing relationship with Khaitans. Thus, we have also sent a letter of intent to the lenders stating that our group is going to support the existing promoters in the ongoing restructuring of the company with the Khaitans,'' MK Shah Exports director Himanshu Shah told PTI.

''We will do whatever is required to be done to retain the company under the current management. Tea is a different sort of business where social aspects are immense and any abrupt change may cause social unrest. There are 70,000 workers in the gardens," he said.

He did not share any financial details of their offer.

McLeod produces 73 million kg of tea from a few dozen tea gardens mostly in the state of Assam.

The officials of Aditya Khaitan-led company said the management has not signed any agreement with anyone and is waiting for lenders to take forward their ongoing restructuring plan.

MK Shah Exports is a major tea player and had also bought eight tea gardens from McLeod for Rs 331 crore back in 2018.

Carbon Resources had said that the offer made by them is more lucrative for the lenders as the Khaitans are not offering any sizable upfront cash infusion in the restructuring. While they want Rs 300 crore equity infusion.

''Our total offer is Rs 1,245 crore and with a proper plan. Bankers have not informed us till now,'' Carbon Resources finance head Mahendra Sharma said.

McLeod informed the bourses that they had only information about the purchase of 52.5 lakh shares totalling 5.03 per cent stake in the company by Carbon Resources.

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