Tata Global Beverages Ltd said on Thursday it has sold its entire 31.85% stake in its Sri Lankan joint venture, Estate Management Services Pvt. Ltd, for Rs 120 crore ($18.7 million).
The stake sale is part of a strategy to focus on its branded business in key regions, the beverages arm of the diversified Tata Group said in a stock-exchange disclosure. It didn’t disclose the identity of the buyer.
However, a filing by joint venture partner Sunshine Holdings PLC to the Colombo stock exchange shows it picked up more than half of Tata Global’s stake for about Rs 67 crore. Sunshine now holds a 60% stake in Estate Management, it said.
The Sri Lankan deal comes after Tata Global exited Russia and China. In August, Tata Global had decided to sell its Russian tea and coffee operations to Skodnya Grand for an undisclosed amount. It also sold its 90% stake in Zhejiang Tata Tea Extraction Co in China for about Rs 17.5 crore to its minority joint venture partner Zhejiang Tea Group.
Tata Global had formed the Sri Lankan JV with Sunshine Holdings in early 1990s. In 2013, its stake in Estate Management fell from 49% to 31.85% when Pyramid Wilmar Plantations Pvt. Ltd came in as a new partner.
Estate Management is the holding company of Colombo-listed Watawala Plantations PLC, in which it holds a 75.65% stake. Watawala cultivates, makes and sells tea, palm oil and other commodities.