Tata Consumer, Tata Coffee merger effective January 1

Tata Consumer, Tata Coffee merger effective January 1

Tata Consumer Products (TCPL) on Thursday said the appointed date of the merger of Tata Coffee (TCL) with the company would be January 1, 2024.

The announcement comes almost two years after Tata Consumer had first announced the merger of all businesses of Tata Coffee with itself. This was part of a reorganisation plan in line with the company’s strategic priority of unlocking synergies and efficiencies.

While the plantation business of TCL would be demerged into TBFL, the remaining business of TCL, consisting of its extraction and branded coffee business, would be merged with TCPL, the company said.

Under the scheme of arrangement, shareholders of TCL would receive an aggregate of three equity shares of TCPL for every 10 equity shares held by them in TCL.

This would be carried out through the issuance of one equity share of TCPL for every 22 equity shares of TCL in consideration for the demerger. For the merger, 14 equity shares of TCPL would be issued for every 55 equity shares of TCL, the company said.

Shares of TCPL closed trade up 1.47% on the BSE on Thursday at Rs 1,042.10 apiece even as the broader BSE Sensex closed in the green at 72,410.38, up 0.52% versus the previous day’s close.