Mcleod to dilute holding, pay back debt

Kolkata, Sep 19 (UNI) McLeod Russel India Ltd, the Williamson Magor group company, today said it is planning to dilute the promoters' holding to 45 per cent from the present level of over 50 per cent this fiscal and added that the company has plans to raise million (Rs 138 crore) from qualified institutional investors to pay back debts.

McLeod Russel chairman B.M.Khaitan said the company has plans to bring down its debt portfolio by Rs 200 crore during the current financial year through qualified institutional placement along with internal fund generation.

"The promoters' stake dilution will take place after qualified institutional placement," McLeod Russel managing director Aditya Khaitan said on the sidelines of the company's annual general meeting.

McLeod had decided against pursuing the GDR route which it was looking at earlier.

The QII route, based on the new Sebi norms, is likely to be explored by many listed Indian companies who have been accessing the GDR and the FCCB mode of raising funds in the last couple of years.

All this is part of the tea major's overall strategy to reduce its debt burden substantially.

The MD said the company, which is on a "consolidation mode" currently, may also go for domestic acquisitions in near future.

"We are open for any suitable buy out in Asom, if the gardens are of good health," he said, pointing out that the company intends to concentrate in Asom.

Meanwhile, Khaitan said McLeod has also decided "not to sell out" its tea gardens at Dooars. He did not comment on the size of the acquisition the company is looking at.

The MD said McLeod Russel has set a target of exporting about 25 million kg of tea this fiscal. "We are exploring the markets in Pakistan, Egypt and Iran. The Centre has already opened roads to these countries," he added.

McLeod Russel, which is the world's largest plantation company with a production of 70 million kg, has seen its debts grow following two major acquisitions those of Williamson Tea Assam and HLL's Doom Dooma in 2005.

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