On Tuesday, Tata Consumer Products Limited (TCPL), a prominent player in the FMCG sector, announced that its board of directors has granted approval for the merger of its wholly-owned subsidiaries, which include NourishCo Beverages Limited, Tata SmartFoodz Limited, and Tata Consumer Soulfull Private Limited, with the main company. This decision was communicated through a regulatory filing by TCPL.
According to the filing, the designated date for the scheme is April 1, 2024.
The recipient company, TCPL, previously acquired and held all the equity shares issued by the transferring companies—NourishCo Beverages Limited, Tata SmartFoodz Limited, and Tata Consumer Soulfull.
In accordance with the share purchase and investment agreement established on February 2, 2021, TCPL has acquired all the optionally convertible preference shares of Tata Consumer Soulfull Private Limited (previously identified as Kottaram Agro Foods Private Limited) (“TCSPL”) from its previous promoters.
Consequently, Tata Consumer Products now owns the complete share capital of all three transferring companies, including TCSPL. Given that TCPL is the parent company holding all shares in the share capital of the transferring companies, it is not permitted to issue or allocate any new shares to itself in connection with the merger. As a result, no new shares will be issued by TCPL as part of the amalgamation.
The scheme is contingent upon obtaining essential statutory and regulatory endorsements, including approval by the esteemed National Company Law Tribunal in accordance with Sections 230 and 232 of the Companies Act, 2013. This proposal is designed to be advantageous for both the transferring and transferee companies and is expected to deliver favorable outcomes for shareholders, creditors, employees, and all relevant stakeholders.
Tata Consumer Products Limited primarily operates in the field of producing, promoting, distributing, and selling consumer goods. The company offers a wide range of products within the food and beverage sectors, encompassing items like tea, coffee, water, edible salt, spices, protein-based foods, ready-to-eat and ready-to-drink beverages, along with various other consumer products. These products are marketed under well-known brands such as Tata Tea, Tetley, Tata Salt, Tata Sampann, and more.