Tata Coffee, Tata Consumer Products Merger To Be Effective From Jan. 1
The Tata company board will determine the allotment of TCPL shares to Tata Coffee shareholders on Jan. 15, 2024.
The scheme of arrangement between Tata Coffee Ltd., Tata Consumer Products Ltd. and its wholly owned subsidiary TCPL Beverages and Foods Ltd. will be effective from Jan. 1, 2024.
The scheme involves the demerger of Tata Coffee's plantation business into TCPL Beverages and Foods, and the merger of the remaining business with Tata Consumer Products.
The board of directors of TCL, the scheme implementation committee of the board of TCPL, and the board of directors of TBFL have acknowledged, that the conditions under Clause 29 of the scheme are duly fulfilled, Tata Coffee said in its exchange filing on Thursday.
Accordingly, in terms of the scheme, the appointed date and the effective date of the scheme are Jan. 1, 2024, the statement said.
The Tata company board will determine the allotment of TCPL shares to Tata Coffee shareholders on Jan. 15, 2024.
The National Company Law Tribunal gave its approval for the scheme of arrangement among TCL, TBFL and TCPL on Dec. 1.
In March 2022, it announced the reorganisation plan, in line with the company's priority of unlocking synergies and efficiencies.
Following this announcement, TCPL said that it will issue one equity share for every 22 equity shares held in TCL, for the demerger of the plantation business of TCL into TCPL.
For the merger of the remaining business, the company will issue 14 equity shares of TCPL for every 55 equity shares held in TCL.
Upon completion of the demerger and the amalgamation, TCL will stand dissolved and effectively, shareholders of TCL will receive three new equity shares of TCPL in exchange for every 10 equity shares of TCL.
Shares of Tata Coffee closed 1.41% higher at Rs 308.4 apiece on the NSE, as compared with a 0.57% advance on the benchmark Nifty 50.
