Godrej Industries to transfer foods business to Godrej Tea

Mumbai, Mar 14 (UNI) Godrej Industries has signed an agreement with Godrej Tea Limited (GTL) to sell its foods business, excluding the manufacturing facility at Wadala, Mumbai, with effect from the close of working hours on March 31.

In a communique to the BSE today, Godrej Industries stated that according to the terms of the agreement, Godrej Tea will pay Godrej Industries Rs 40 crore in cash and Rs 30 crore in the form of shares, aggregating a total consideration of Rs 70 crore.

Godrej Industries and Godrej Tea also signed a Shareholders Agreement with IL&FS Investment Managers Ltd (IIML) by which IIML through the funds managed by it, namely, the Leverage India Fund and Sara Fund would invest Rs 60 crore in Godrej Tea so as to acquire a 40 per cent stake.

GTL is proposed to be renamed as Godrej Beverages and Foods to reflect the combined business, stated the communique.

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