One reorganization plan suggestion was to combine all of Tata Coffee’s operations with Tata Consumer Products.
The proposed merger between Tata Coffee and its parent company, Tata Consumer Products Ltd. (TCPL), is set to take effect on January 1. The company announced on December 28 that Tata Coffee’s plantation unit will be demerged and combined into TCPL Beverages & Foods, another Tata group company.
The proposal to merge all of Tata Coffee’s operations with Tata Consumer Products was made as part of a reorganization plan that aimed to maximize the company’s efficiency and synergies.
The companies’ board of directors has confirmed that all requirements, including “filing of the certified copies of the order with the registrar of companies in form INC-28,” have been duly completed.
According to a filing that Tata Coffee made with the exchanges, “with the Scheme becoming effective on January 1, 2024, the Company will get dissolved without winding-up, and accordingly the office of all Directors and Key Managerial Personnel of the Company shall stand vacated on that date, without further course of action.”
January 15, 2024 is the record date that the company will use to identify the TCL shareholders who will be qualified to receive shares of Tata Consumer Products, which will be distributed in accordance with the demerger and the amalgamation.
On December 28, shares of Tata Coffee and Tata Consumer Products reached their 52-week high of Rs 309.05. The shares ended the day 1.41 percent higher, at Rs 308.4. At Rs 1,048.55 per share, Tata Consumer Products’ stock closed 2.12 percent higher, close to the day’s peak.
In a filing with the stock exchange, the company stated that the plantation division of Tata Coffee will be divided into TCPL Beverages & Foods, while the extraction and branded coffee divisions of TCL will become a part of TCPL.
In a vote held in 2022, shareholders of Tata Consumer Products, Tata Coffee, and TCPL Beverages and Foods approved a restructuring proposal.
Existing shareholders will be issued one equity share for every 22 equity shares held in Tata Coffee by TCPL, as part of the reorganisation scheme.
