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McLeod Russel arm completes stake acquisition
31 May 2011: McLeod Russel India’s UK based arm Borelli Tea Holdings, has completed the acquisition of the controlling stake of 60 per cent in Gisovu Tea Company of Rwanda for $2.4 million (approx Rs 10.8 crore).
It has further invested another $1.8 million (approx Rs 8.1 crore) since the initial takeover in February 2011, taking the total to $4.2 million (approx Rs 18.9 crore) so far.
The company has decided to invest another $4 million (approx Rs 18 crore) in the Rwandan tea garden, which currently produced 1.7 million kg of tea per annum.
Borelli provisionally took over the management control through an MoU on February 23. The Rwandan Government through the Rwanda Development Board and Rwanda Tea Authority hold 30 per cent in the company. Growers' cooperative has 10 per cent.
Source: Hindu Business Line