Kolkata, Apr 22 (IANS): Bulk tea producer, McLeod Russel on Monday said it has executed an agreement with Luxmi Tea Company for sale of three of its tea gardens in Assam at an estimated consideration over Rs 150 crore.

"The company has executed an agreement for sale of specified assets of Addabarie, Mahakali and Dirai Tea Estate of the company, with Luxmi Tea Company on April 22, 2019, subject to approval from appropriate authorities," it said in a regulatory filing.

The three estates collectively contributed close to Rs 77 crore to the company's turnover in 2017-18.

Luxmi Tea, having its registered office at Kolkata, is engaged in growing, manufacture and sale of tea.

Mcleod Russel had entered into a "non-binding term sheet" with Saffron Enclave Private Ltd for the sale of three estates, which has expired on March 31.

The company, which has been pruning down gardens, had earlier proposed to utilise the sale proceeds in repayment of certain high interest bearing debts and also for making investment for diversification into the packet tea business.

In the last month, tea major's wholly owned subsidiary Borelli Tea Holdings had sold its equity stake in Gisovu Tea Co in Rwanda.