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The warring promoters of Warren Tea, arguably the third largest in the country, after months-long negotiations finally reached a settlement to split the total 14 Assam tea garden assets of the company equally between the two factions.
The settlement entailed hiving off seven gardens to a new company, which would be under the control of the Ruias. While the remaining seven other gardens would under the control of the Goenkas.
Board reconstituted
According to a statement issued by the company: “Upon an amicable settlement of disputes” between Mr Vinay K. Goenka and Mr Anil Ruia, the two promoters of Warren Tea Ltd, at a board meeting of the company held on Thursday, the Warren Tea board was reconstituted as an “interim measure with equal representation of both sides.”
The note further said that the reconstituted board would have Mr C.K. Dhanuka as the independent Chairman, and Mr Pradip K. Khaitan, as the independent Vice-Chairman.
Splitting estates
The board has further approved “in principle” the de-merger of seven tea estates of the company – Balijan (H), Deeamoolie, Dhoedaam, Rajah Alli, Thowra, Tippuk and Zaloni – in upper Assam with an annual crop of about 8 million kg, to a new company under the control of Mr Ruia.
The other seven tea estates of the company – Balijan (N), Deohall, Duamara, Hatimara, Rupai, Sealkotee and Tara, also in upper Assam area with an annual crop size of around 8 million kg – would continue to remain with the company under the management of Mr Goenka.
The company note was, however, silent about other assets of Warren Tea.
The promoters of Assam registered company had moved court last year. An out-of-court settlement on asset division also did not succeed. The company also postponed its scheduled board meetings for considering financial results for the September quarter (of 2011-12) several times in the recent months.
The stock on BSE closed at Rs 370, up 5.56 per cent.
> jayanta_mallick@thehindu.co.in
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