Tata Coffee’s amalgamation with Fast Moving Consumer Goods (FMCG) entity Tata Consumer Products Ltd (TCPL) and TCPL Beverages & Foods is set to take effect on January 1.
The consolidation of Tata Coffee’s entire business into Tata Consumer Products was suggested as a component of a restructuring strategy aligned with the company’s objective of unlocking synergies and enhancing efficiency.
Continue Exploring: Tata Consumer Products announces merger of wholly-owned subsidiaries, strengthening its FMCG portfolio
The boards of directors of the companies have recognised that all the conditions have been duly met, including the “submission of certified copies of the order to the registrar of companies in the form INC-28.”
“With the Scheme becoming effective on January 1, 2024, the Company will get dissolved without winding-up, and accordingly the office of all Directors and Key Managerial Personnel of the Company shall stand vacated on that date, without further course of action,” said Tata Coffee in a filing with the exchanges.
The date of record for the company to ascertain the eligible shareholders of TCL who will receive shares in Tata Consumer Products, allocated as per the demerger and amalgamation, is January 15, 2024.
Tata Coffee and Tata Consumer Products shares reached their 52-week peak on December 28, closing at INR 309.05. The shares settled at INR 308.4, marking a 1.41 percent increase. Tata Consumer Products stock concluded close to the day’s peak at INR 1,048.55 per share, reflecting a 2.12 percent rise.
The plantation segment of Tata Coffee is set to undergo demerger into TCPL Beverages & Foods, as outlined in the company’s filing with the bourses. The residual business of TCL, encompassing its extraction and branded coffee operations, will be amalgamated with TCPL.
Shareholders of Tata Consumer Products, Tata Coffee, and TCPL Beverages and Foods approved a restructuring proposal through a vote conducted in 2022. Under the reorganization scheme, existing shareholders will receive one equity share for every 22 equity shares held in Tata Coffee by TCPL.
