Merger of this Tata company is going to happen, will start with TCPL
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Tata Consumer Products Limited and TCPL Beverages and Foods are going to merge. This merger will be effective from January 1. The company shared information in this regard on December 28. According to the company, after this merger, Tata Coffee Limited will cease to exist.
According to the company’s statement, with this merger, the plantation unit of Tata Coffee will be separated and merged with TCPL Beverages and Foods, another unit of the Tata Group. Let us tell you that with the merger of all the businesses of Tata Consumer Products and Tata Coffee, the synergy and efficiency of the company will be unlocked. Earlier, TCPL had announced the merger of all the businesses of Tata Coffee with its subsidiaries as part of the restructuring plan in line with the strategic priority of improving synergy and efficiency.
Meanwhile, the board of directors of the companies have accepted that all the conditions have been duly fulfilled. The new merger plan will become effective on January 1, 2024. After this the company will be dissolved without winding up. The offices of the directors and key managerial personnel of the company will become vacant on that date without any action.
The record date for the company to determine TCL’s shareholders is January 15, 2024. Only by this date will they be eligible to receive shares in Tata Consumer Products, which will be allotted pursuant to the demerger and amalgamation. Shares of Tata Coffee and Tata Consumer Products hit their 52-week high of Rs 309.05 on December 28. The shares closed at Rs 308.4 with a gain of 1.41 percent. The stock of Tata Consumer Products closed at the day’s high of Rs 1,048.55, up 2.12 per cent.
While Tata Coffee’s plantation business will be demerged into TCPL Beverages & Foods, the remaining businesses of TCL, including its extraction and branded coffee businesses, will be merged into TCPL, the company said in a stock exchange filing. Shareholders of Tata Consumer Products, Tata Coffee and TCPL Beverages & Foods gave their approval to the restructuring proposal during a vote to be held in 2022. As part of the restructuring plan, existing shareholders will be issued one equity share for every 22 equity shares held by TCPL in Tata Coffee.
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