The scheme of arrangement between Tata Coffee Ltd (TCL), Tata Consumer Products Ltd (TCPL) and its wholly owned subsidiary TCPL Beverages and Foods Ltd (TBFL) will be effective from January 1, 2024.
The scheme involves the demerger of Tata Coffee’s plantation business into TCPL Beverages and Foods and the merger of the remaining business with Tata Consumer Products.
The board of directors of TCL, the scheme implementation committee of the board of TCPL, and the board of directors of TBFL have acknowledged that the conditions under Clause 29 of the scheme are duly fulfilled, Tata Coffee stated in its exchange filing on Thursday.
Accordingly, in terms of the scheme, the appointed date and the effective date of the scheme are January 1, 2024, the statement added.
The Tata company board will determine the allotment of TCPL shares to Tata Coffee shareholders on January 15, 2024.
The National Company Law Tribunal gave its approval for the scheme of arrangement among TCL, TBFL and TCPL on December 1. In March 2022, it announced the reorganisation plan in line with the company’s priority of unlocking synergies and efficiencies. Following this announcement, TCPL stated that it would issue one equity share for every 22 equity shares held in TCL for the demerger of TCL’s plantation business into TCPL.
For the merger of the remaining business, the company will issue 14 equity shares of TCPL for every 55 equity shares held in TCL.
Upon completion of the demerger and the amalgamation, TCL will stand dissolved and effectively, shareholders of TCL will receive three new equity shares of TCPL for every 10 equity shares of TCL.