Tata Tea aims high
Ann/ The Statesman
Tata Tea, which recently sold its stake in US energy drinks maker Glaceau to Coca Cola for nearly Rs 4,800 crore, on Thursday said it would buy about 46 per cent stake in Mount Everest Mineral Water Ltd for around Rs 210 crore to gain a foothold in the bottled water segment. The beverages company has agreed to buy 25.74 per cent stake in MEMW for around Rs 115 crore and will acquire another 20 per cent later through an open offer. The acquisition would be funded entirely through debt, Tata Tea chief financial officer, LK Krishnakumar said here. "We have not decided on what kind of loan it will be, we have several proposals and have to evaluate those before taking any decision," he said. Tata Tea will subscribe 50.99 lakh equity shares of MEMW on preferential basis at Rs 140 per share. This constitutes 15 per cent of the paid-up capital on a fully diluted basis at a total price of Rs 70 crore. Further, Tata Tea will acquire 31.10 lakh shares held by Foresight Holdings Pvt Ltd and Vinod Sethi, promoters of MEMW, and Salim Govani, MEMW managing director, at Rs 140 per share. This amounted to 10.77 per cent stake for around Rs 40 crore. Tata Tea would also make an open offer within 100 days to buy 20 per cent stake at Rs 140 per share. "We have identified water and beverages vertical as a big opportunity," Tata Tea managing director, PT Siganporia told reporters here. Mount Everest Mineral Water, which owns the Himalayan brand of bottled water, was promoted by Dadi Balsara.
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