Tata Group company Tata Coffee Ltd on Thursday (December 28) said it will merge with Tata Consumer Products Ltd (TCPL) and TCPL Beverages & Foods Ltd (TBFL) on Monday (January 1).
“The Board of Directors of TCL, the Scheme Implementation Committee of the Board of TCPL and the Board of Directors of TBFL have acknowledged, that the conditions under Clause 29 of the Scheme, including filing of the certified copies of the order with the Registrar of Companies in form INC-28, are duly fulfilled. Accordingly, in terms of the Scheme, the Appointed Date and the Effective Date of the Scheme are January 01, 2024,” Tata Coffee said in a regulatory filing.
Following the merger, Tata Coffee Ltd will dissolve without winding up from January 1, 2024, onwards.
“With the scheme becoming effective on January 1, 2024, the Company will get dissolved without winding-up, and accordingly office of all Directors and Key Managerial Personnel of the company shall stand vacated on that date, without further course of action,” the company stated.
Further, in another filing, Tata Coffee said it has set January 15, 2024 as the record date.
“…we wish to inform you that the Record Date, for the purpose of determining the shareholders of TCL to whom equity shares of TCPL would be allotted pursuant to the demerger and the Amalgamation in accordance with Clause 13.1 and Clause 20.1, respectively, is Monday, January 15, 2024,” Tata Coffe said.
Back in 2022, shareholders of Tata Consumer Products Ltd, Tata Coffee, and TCPL Beverages and Foods approved the reorganisation scheme of the three companies in a vote held on November 12. Under the scheme, Tata Coffee will be merged with Tata Consumer Products and its wholly-owned subsidiary.
Under the reorganisation scheme, the plantation business of Tata Coffee would be merged into TCPL Beverages & Foods, a wholly-owned subsidiary of TCPL. In exchange, TCPL will issue one equity share for every 22 equity shares held in Tata Coffee to existing shareholders.
The rest of the business of Tata Coffee will be merged with TCPL, in exchange for the issuance of 14 equity shares of TCPL for every 55 equity shares held in Tata Coffee to the existing shareholders.
Following the merger, Tata Coffee will stand dissolved though without being wound up. Existing shareholders of the company will receive three shares of TCPL for every 10 shares that they hold as of the record date for the amalgamation.
Shares of Tata Coffee Ltd ended at ₹308.40, up by ₹4.30, or 1.41%, on the BSE.
(Edited by : Shoma Bhattacharjee)
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
