Kolkata, Feb 17 (IANS): In an apparent bid to settle dispute between two main promoters over the control of Warren Tea Limited, one of the largest producers and exporters of CTC and orthodox tea, its board of directors Thursday in principle approved the demerger of seven tea estates of the company to a separate company.
"The Board has approved in principal the demerger of seven tea estates of the company to a separate company. Detailed approval will be considered by the Board at a subsequent meeting," Warren Tea Ltd informed the Bombay Stock Exchange (BSC).
Two key shareholders of Warren, which currently has 14 tea estates, Anil Kumar Ruia and Vinay Kumar Goenka, have been fighting a legal battle over control of the company.
The board has also decided to close down Warren Travels, a division of the company, with effect from March 31, 2012.