As part of this merger, the plantation business of Tata Coffee will be integrated into TCPL Beverages & Foods.
In a strategic business decision, Tata Coffee has merged with Tata Consumer Products, starting from January 1, 2024. As a result of this merger, Tata Coffee's plantation business will be incorporated into TCPL Beverages & Foods, a fully-owned subsidiary of TCPL, as stated in the company's stock exchange filing on Thursday.
Under the merger scheme, TCPL will issue one equity share for every 22 equity shares held by existing Tata Coffee shareholders. In compliance with relevant regulatory provisions, the company has announced a Record Date of January 15, 2024. This date will be crucial for determining the shareholders of Tata Consumer Products eligible to receive equity shares of TCPL as part of the demerger and amalgamation process.
The merger reflects a strategic decision within the Tata Group, with potential objectives including business optimisation, synergy creation, or an enhancement of operational efficiency. Merger and demerger activities are common corporate strategies employed by companies seeking to streamline operations and deliver enhanced value to their shareholders. The move is expected to have implications for the shareholders of both Tata Coffee and Tata Consumer Products.