Tata Coffee merger with Tata Consumer Products, TCPL Beverages set for January 1

Tata Coffee and Tata Consumer Products shares hit their 52-week on December 28.

Tata Coffee's proposed merger with parent company Tata Consumer Products Ltd (TCPL) will come into effect from January 1. Simultaneously, Tata Coffee’s plantation unit will be demerged and amalgamated into another Tata group unit TCPL Beverages & Foods, the company said on December 28.

The merger of all businesses of Tata Coffee with Tata Consumer Products, was proposed as part of a reorganisation plan in line with the company’s plan of unlocking synergies and efficiencies.

The board of directors of the companies have acknowledged that all the conditions have been duly fulfilled, including “filing of the certified copies of the order with the registrar of companies in 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 record date for the company to determine the shareholders of TCL who will be eligible to receive shares in Tata Consumer Products, which will be allotted pursuant to the demerger and the amalgamation, is January 15, 2024.

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Tata Coffee and Tata Consumer Products shares hit their 52-week on December 28 at Rs 309.05. The shares settled at Rs 308.4, higher by 1.41 percent. Tata Consumer Products stock settled near the day’s high, at Rs 1,048.55 apiece, up 2.12 percent.

The plantation business of Tata Coffee will be demerged into TCPL Beverages & Foods, the remaining business of TCL, consisting of its extraction and branded coffee business, will be merged with TCPL, noted the company in a filing with the bourses.

Shareholders of Tata Consumer Products, Tata Coffee, and TCPL Beverages and Foods gave their nod to a restructuring proposal during a vote conducted in 2022. Existing shareholders will be issued one equity share for every 22 equity shares held in Tata Coffee by TCPL, as part of the reorganisation scheme.