The board of directors has approved the sale of foods division (excluding the Wadala factory) to Godrej Tea for Rs 70 crore (Rs 700 million) plus a networking capital of over Rs 15 crore (Rs 150 million) on the date of transfer of which Rs 40 crore (Rs 40 million) and excess of net working capital of over Rs 15 crore (Rs 150 million) is to be received in cash and balance Rs 30 crore (Rs 300 million) as equity shares in the combined entity, the company informed the Bombay Stock Exchange.
In this connection, the company is expected to sign an agreement with Godrej Tea for sale of the foods division, shortly, it said.
The Board has also approved convening of an extraordinary general meeting on April 19 to seek shareholders' approval for investment in Godrej Tea of up to Rs 100 crore (Rs 1 billion) in addition to the existing limits, it said.
The existing limits include facilitating acceptance of Rs 30 crore (Rs 300 million) in the form of equity shares towards sale of the foods division and further investment of up to Rs 70 crore (Rs 700 million) for expansion or acquisition needs as and when suitable opportunities arise, it added.
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