Tata Coffee rallies nearly 13 pc; Tata Consumer jumps over 5 pc
Tata Coffee shares jumped 12.91 per cent to Rs 221.60 on the BSE.
Shares of Tata Coffee rallied nearly 13 per cent on Wednesday after Tata Consumer Products announced the merger of all businesses of the company with itself as part of a reorganisation plan.
Tata Coffee shares jumped 12.91 per cent to Rs 221.60 on the BSE.
The stock of Tata Consumer Products also rallied 5.28 per cent to Rs 782.50.
Tata Consumer Products Ltd (TCPL) on Tuesday announced the merger of all businesses of Tata Coffee Ltd with itself as part of a reorganisation plan in line with its strategic priority of unlocking synergies and efficiencies.
While the plantation business of Tata Coffee Ltd (TCL) will be demerged into TCPL’s wholly-owned arm TCPL Beverages & Foods Ltd (TBFL), the remaining business of TCL, consisting of its extraction and branded coffee business, will be merged with TCPL, the company said in a statement.
The demerger to happen as the first step and the merger to happen as the immediate second step, both being proposed through a composite scheme of arrangement.
Under the scheme, shareholders of TCL (other than TCPL) will receive an aggregate of 3 equity shares of TCPL for every 10 equity shares held by them in TCL.
This will be carried out through the issuance of 1 equity share of TCPL for every 22 equity shares of TCL in consideration for the demerger.
For the merger, 14 equity shares of TCPL will be issued for every 55 equity shares of TCL, it added.
“This will enable the consolidation and 100 per cent ownership of the branded, extractions & plantations business of TCL into TCPL and its wholly-owned subsidiary,” it said.
PTI
