INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of Tata Chemicals (TCL) and Tata Global Beverages (TGBL) jumped up to 8 per cent in early trade on Thursday after Tata
Group announced the merger of the branded food business of Tata Chemicals and Tata Global Beverages.
With an intent to put in place a
consolidated platform for its consumer business and become a leader in the FMCG segment, Tata Group announced the transfer of the branded
food business from TCL to TGBL in an all-shares deal that will create an over Rs 9,000 crore giant.
Under the agreement, TGBL will buy the
business of selling edible salt, spices, and lentils and give shares in return to TCL
TGBL will rename itself as Tata Consumer Products after the deal.
The boards of directors of Tata Global Beverages and Tata Chemicals
approved the de-merger of the consumer products business of TCL into TGBL
Also, each shareholder of TCL will get 1.14 new equity shares of TFBL for every one equity share held.
The proposed transaction will create
a focused consumer products company with a combined turnover of Rs 9,099 crore and an EBIDTA of Rs 1,154 crore, Misra said.
Shares of TCL
traded 6.66 per cent up at Rs 594.50 while those of TGBL were 1.06 per cent up at Rs 200.85 around 9:40 am on BSE