Shareholders of Tata Consumer, Tata Coffee and TCPL Beverages approved the scheme of arrangement between the three companies, the voting for which was held on November 12.
In March, Tata Consumer’s board had approved the demerger of Tata Coffee’s plantation business into TCPL Beverages & Foods, a wholly-owned subsidiary of Tata Consumer Products. It also approved the merger of Tata Coffee’s remaining business, consisting of its extraction and branded coffee business, with Tata Consumer Products.
Tata Consumer Products will issue one equity share for every 22 share held in Tata Coffee to existing shareholders. Also, following the amalgamation of the remaining business of Tata Coffee with the company in exchange of new equity shares of the company will be issued to the equity shareholders of Tata Coffee. Shareholders of Tata Coffee will get 14 shares of Tata Consumer Products for every 55 shares held in Tata Coffee, it said in its exchange filing.
The company also said in its filing that Tata Coffee will stand dissolved, without being wound up, upon the above demerger and amalgamation.
Shareholders of Tata Coffee will get three shares of Tata Consumer Products in exchange for 10 shares of Tata Coffee.
Source: Business-Standard