The Tata Group on Thursday said that Tata Coffee’s proposed merger with parent company Tata Consumer Products Ltd (TCPL) will take effect from January 1. At the same time, Tata Coffee’s plantation unit will be demerged and merged with TCPL Beverages & Foods, another Tata conglomerate.
The merger of all businesses of Tata Coffee with Tata Consumer Products is proposed as part of a restructuring plan in line with the company’s plan to unlock efficiencies.
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The board of directors of the companies have agreed that all the due processes have been fulfilled including “filing certified copies of the order with the Registrar of Companies in Form INC-28.
Tata Cofee in a regulatory filing informed that With effect from January 1, 2024, the scheme would result in the company being wound up without termination and accordingly the office of all the directors and key management personnel of the company would remain vacant on that date without taking any action.
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January 15 is record date
January 15, 2024, is the record date for determining the shareholders of TCL who will be eligible to receive shares in Tata Consumer Products allotted under the demerger and merger.
Meanwhile, shares of Tata Coffee and Tata Consumer Products hit a 52-week high value on Thursday (December 28). The stock price rose 1.41 per cent to Rs 308.4. Shares of Tata Consumer Products rose 2.12 per cent to settle at Rs 1,048.55, the day’s high.
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Tata’s Cofee Plantation Bussiness to be merged with TCPL
As per the company, Tata Coffee’s plantation business will be demerged into TCPL Beverages & Foods, and TCL’s remaining business, extraction and branded coffee business, will be merged with TCPL.
Shareholders of Tata Consumer Products, Tata Coffee and TCPL Beverages and Foods approved the restructuring proposal during a poll held in 2022. Existing shareholders will be given one share for every 22 equity shares they hold in Tata Coffee.
