“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, US, 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,” it said in a regulatory filing to the BSE.
King Maker Marketing’s product lines are the Ace, Checkers, Hi-Val and Gold Crest brand families, positioned in the value segment of the cigarette industry.
ITC on Saturday entered into an agreement with the US-based buyer, Premier Manufacturing Inc, to sell its shares in the subsidiary company.
“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 sale is expected to be completed by November 30, it added.
Shares of ITC were trading 0.71 per cent higher at Rs 240.85 on the BSE.