Tata Tea sells 4.5 pc stake in group co
Tata Tea Ltd on Friday sold a 4.5 per cent stake in another group company Tata Investment Corp to Tata Sons Ltd for about Rs 60 crore, aimed at part-funding its 677 million dollars (Rs 3,146 crore) acquisition of US-based Energy Brands.
Tata Tea sold more than 15.5 lakh shares of Tata Investment Corp at a price of Rs 383.65 per share in a block deal on the Bombay Stock Exchange.
Market sources said that the deal was in line with its resolve to raise funds by selling some of its shareholding to its founder-promoter Tata Sons Ltd to pay for a stake in the US-based flavoured water maker Energy Brands Inc.
According to the latest data available with the stock exchanges, Tata Tea held about 26 lakh shares of Tata Investment Corp, amounting to a 7.53 per cent equity stake, at the end of June quarter this year.
Tata Sons’ stake in Tata Investment Corp stood at 31.75 per cent as on June 30.
Yesterday, Tata Tea had sold about 2.21 lakh shares of auto major Tata Motors Ltd for Rs 18.85 crore to Tata Sons. Tata Tea held about 3.7 lakh shares of Tata Motors at the end of June 2006 quarter.
The deal was struck at a price of Rs 850.75 per share in a block deal at the Bombay Stock Exchange.
Tata Tea had said earlier that it plans to raise Rs 460 crore by selling shares to its founder Tata Sons to part finance its purchase of Energy Brands Inc.
Tata Tea, Tata Sons Ltd and a UK affiliate last month agreed to acquire 30 per cent of Energy Brands, also known as Glaceau.
Tata Tea’s shares rose 1.6 per cent to close at Rs 749.15 at the BSE on Friday, while Tata Investment Corp’s share price closed down 4.16 per cent to Rs 398.55.
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