Tata Coffee, Tata Consumer Products Merger To Be Effective From Jan. 1

On January 15, 2024, the Tata company’s executive board is set to finalize the distribution of TCPL shares to the stakeholders of Tata Coffee. This follows the strategic restructuring involving Tata Coffee Ltd., Tata Consumer Products Ltd., and TCPL Beverages and Foods Ltd., a fully owned subsidiary. The restructuring, effective from January 1, 2024, entails the bifurcation of Tata Coffee’s plantation operations into TCPL Beverages and Foods, while the remaining segments will integrate with Tata Consumer Products.

Tata Coffee, Tata Consumer Products Merger To Be Effective From Jan. 1

Tata Coffee, in its recent stock exchange disclosure, confirmed that the prerequisites outlined in Clause 29 of the arrangement have been met. This confirmation was made jointly by the TCL board, TCPL’s scheme implementation committee, and TBFL’s board of directors. Consequently, the commencement and the actualization dates of the arrangement are set for January 1, 2024.

Tata Coffee, Tata Consumer Products Merger To Be Effective From Jan. 1

The reorganization received the green light from the National Company Law Tribunal on December 1, following its initial announcement in March 2022. This reorganization aligns with the company’s objective to enhance synergies and operational efficiencies. TCPL disclosed that for the plantation business demerger, shareholders in TCL will receive one TCPL share for every 22 shares they hold in TCL.

Regarding the merger of the residual business, TCL shareholders are poised to receive 14 TCPL shares for every 55 shares they hold in TCL. Following the completion of both the demerger and merger, TCL will be dissolved. Consequently, TCL shareholders will acquire three new TCPL shares in exchange for every ten shares they hold in TCL. In response to these developments, Tata Coffee’s stock value witnessed a modest rise of 1.41%, closing at Rs 308.4 per share.

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