Shareholders of Tata Consumer and Tata Coffee approved the merger on November 12th.
- ByStartupStory | November 16, 2022
The voting for the scheme of arrangement between the three firms, which took place on November 12, was approved by the shareholders of Tata Consumer, Tata Coffee, and TCPL Beverages.
Tata Consumer Products and its wholly-owned subsidiary will be merged with Tata Coffee (TCL), according to the plan. The Tata Coffee plantation business would be incorporated into TCPL Beverages & Foods, a fully owned subsidiary of TCPL, as part of the reorganization plan. The board of Tata Consumer Products approved the demerger of the plantation division of Tata Coffee into TCPL Beverages & Foods, a wholly-owned subsidiary. This transaction took place in March. Additionally, it gave its approval for Tata Consumer Products to acquire the remaining operations of Tata Coffee, including its extraction and branded coffee businesses.
For every 22 shares now owned by shareholders in Tata Coffee, Tata Consumer Products will issue one equity share. Additionally, additional equity shares of the firm will be granted to the equity shareholders of Tata Coffee following the merger of the company with the remainder of Tata Coffee’s operations. According to the company’s exchange filing, for every 55 shares of Tata Coffee held by shareholders, they will receive 14 shares of Tata Consumer Products. The company also stated in its statement that, as a result of the aforementioned demerger and amalgamation, Tata Coffee will be dissolved rather than wound up. In exchange for 10 shares of Tata Coffee, shareholders will receive three shares of Tata Consumer Products.
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