Multi-business conglomerate ITC on Sunday said it will sell its entire stake in US-based wholly owned subsidiary King Maker Marketing (KMM) for an estimated consideration of $24 million.
The Kolkata-based company entered into an agreement with US-based buyer Premier Manufacturing on Saturday to divest 100% of its equity stake in KMM, which is primarily engaged in distribution of cigarettes in the US. The expected date of completion of sale is November 30, 2016.
“The corporate management committee has approved divestment of company’s entire shareholding (204 shares of common stock with no par value) in King Maker Marketing, Inc, USA, a wholly owned subsidiary, along with assignment of certain trademarks owned by the company, pursuant to the authority given by the board of directors of the company,” ITC said in a stock exchange filing. “The consideration to be received is estimated around $24 million in terms of the share purchase agreement and subject to regulatory approvals and customary closing conditions,” the filing said.
The main business of King Maker Marketing, registered in New Jersey, is to import and distribute tobacco products to licensed wholesalers and retailers across the US.