Mumbai/Kolkata, May 15 (IANS) The boards of Tata Global Beverages Ltd (TGBL) and Tata Chemicals Ltd (TCL), at their respective meetings held on Wednesday, have approved the de-merger of the consumer products business of the latter into the former through a National Company Law Tribunal (NCLT) approved scheme of arrangement.
TGBL would be renamed Tata Consumer Products Ltd to reflect the new strategic direction of the company, while TCL would focus on innovative science-based chemistry solutions and products, a statement said.
Commenting on the announcement, Tata Sons Chairman N. Chandrasekaran said: "Tata Consumer Products consolidates our current presence in food and beverages in the fast-growing consumer sector. Through this combination, we have created a strong growth platform to meet the growing aspirations of Indian consumers."
Pursuant to the scheme, each shareholder of TCL will get 1.14 new equity shares of TGBL for every 1 equity share held in TCL, signifying that a shareholder holding 100 shares in TCL will receive 114 shares in TGBL.
The respective company boards have approved the share Entitlement Ratio based on the recommendations of independent valuers, the statement said.
It also said that the proposed transaction will create a focused consumer products company with a combined turnover and earning before interest, tax, depreciation and amortisation (EBITDA) of Rs 9,099 crore and Rs 1,154 crore, respectively, for the twelve-month period ended March 31, 2019, on a proforma basis.
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