McLeod Russel sees Rs 1,300 crore takeover offer from Jalans

KOLKATA: Jalans-owned Carbon Resources, a city-based company that deals in graphite and other materials, has come out with

an unbinding takeover bid for McLeod Russel, one of India’s largest bulk tea producers belonging to the troubled Williamson

Magor Group. The bid, submitted to lenders, is reported to be worth Rs 1,250 crore.

With promoters having a stake of little over 6. 2% only in the company and a debt of more than Rs 1,700 crore, the lenders will

take a final call on the bid. The Williamson Magor flagship Eveready has already witnessed a change in management to Burmans,

the owners of Dabur India. McNally Bharat, another Williamson Magor company, is now going through an insolvency procedure.


Carbon Resources announced that it has already picked up a stake of just over 5% in McLeod Russel. Sources in Carbon

Resources told TOI that it has already initiated discussions with the majority of the lenders for the bulk tea producer, which it feels

is a national treasure.

According to them, the offer forwarded by Carbon Resources has suggested an entire upfront payment by cash of Rs 1,250 crore

to creditors. Secured creditors will get 100%of their exposure while unsecured creditors, too, would get more than 55%. The total

exposure of unsecured creditors in McLeod is Rs 1,100 crore, while of secured creditors is Rs 600 crore.

Secured creditors are SBI, PNB, UCO and ICICI Bank. The unsecured creditors are HDFC Bank, , RBL, and

others. has the highest exposure among unsecured lenders at Rs 400 crore.