Tata Coffee, Tata Consumer Products merger to be effective from January 1

The scheme of arrangement involving Tata Coffee Ltd (TCL), Tata Consumer Products Ltd (TCPL), and its wholly-owned subsidiary TCPL Beverages and Foods Ltd (TBFL) is set to come into effect from January 1, 2024.

Under the scheme, Tata Coffee's plantation business will be demerged into TCPL Beverages and Foods, while the remaining business will be merged with Tata Consumer Products. The boards of directors of TCL, the scheme implementation committee of the board of TCPL, and the board of directors of TBFL have confirmed that the conditions under Clause 29 of the scheme are duly fulfilled, as per Tata Coffee's exchange filing on Thursday. Therefore, the appointed date and the effective date of the scheme are both January 1, 2024. The Tata company board will determine the allotment of TCPL shares to Tata Coffee shareholders on January 15, 2024. The National Company Law Tribunal approved the scheme of arrangement among TCL, TBFL, and TCPL on December 1. The reorganisation plan was initially announced in March 2022, aligning with the company's priority to unlock synergies and efficiencies.

Following the announcement, TCPL specified that it would issue one equity share for every 22 equity shares held in TCL for the demerger of TCL's plantation business into TCPL. For the merger of the remaining business, the company would issue 14 equity shares of TCPL for every 55 equity shares held in TCL.

Upon completion of the demerger and amalgamation, TCL will be dissolved, and shareholders of TCL will receive three new equity shares of TCPL for every ten equity shares of TCL.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.