ITC to sell 100% stake in King Maker Marketing for nearly Rs 160 crore

The stake sale in King Maker Marketing is expected to be completed by November 30 this year. Representational Image. Image Source: ZeeBiz WebDesk

India's multi-business conglomerate ITC has announced divestment of 100% stake in its wholly-owned subsidiary King Maker Marketing to United States' (US) firm Premier Manufacturing for estimated amount of $24 million (nearly Rs 159.7 crore).

The company had entered into the agreement of stake sale in King Maker Marketing on October 8 this year.

"In terms of Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015, we write to advise that the corporate management committee has approved divestment of company's enitre shareholding (204 shares of common stock with no par value) in King Maker Marketing, Inc., USA, a wholly-owned susidiary, along with assignment of certain trademarks owned by the company. An agreement for this purpose has been entered into on October 8, 2016, the consummation of which is subject to regulatory approvals and customary closing conditions," ITC said in a filing to the BSE on Sunday.

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"The consideration to be received is estimated around $24 million (nearly Rs 159.7 crore) in terms of share purchase agreement and subject to regulatory approvals and customary closing conditions," the company further said in a statement.

The stake sale in King Maker Marketing is expected to be completed by November 30 this year. On the completion of the divestment, King Maker Marketing will no longer be the subsidiary of the ITC, it said.

Last Friday, the stock of ITC closed up 0.48% or Rs 1.15 at Rs 239.15 on the BSE.

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