Tata Coffee to unite with Tata Consumer Products and TCPL Beverages on January 1

Tata Coffee is poised to execute its merger with its parent company, Tata Consumer Products Ltd (TCPL), on January 1. Concurrently, Tata Coffee's plantation unit is scheduled to undergo demerger and amalgamation into TCPL Beverages & Foods, as outlined in the company's announcement on December 28.

The proposed merger of all Tata Coffee businesses with Tata Consumer Products is part of a strategic reorganization plan aimed at unlocking synergies and operational efficiencies. The board of directors has affirmed that all requisite conditions, including the submission of certified copies of the order to the registrar of companies, have been met.

"With the Scheme becoming effective on January 1, 2024, the Company will get dissolved without winding-up, and accordingly the office of all Directors and Key Managerial Personnel of the Company shall stand vacated on that date, without further course of action," Tata Coffee stated in its filing with the exchanges.

The record date for determining eligible shareholders of TCL to receive shares in Tata Consumer Products is slated for January 15, 2024.

On December 28, Tata Coffee and Tata Consumer Products shares attained their 52-week highs. Tata Coffee settled at Rs 308.4, reflecting a 1.41 percent increase, while Tata Consumer Products stock settled near the day’s high at Rs 1,048.55 apiece, registering a 2.12 percent rise.

The demerger will see Tata Coffee's plantation business integrated into TCPL Beverages & Foods, while the remaining business of TCL, encompassing its extraction and branded coffee activities, will merge with TCPL.

The restructuring proposal garnered approval from shareholders of Tata Consumer Products, Tata Coffee, and TCPL Beverages and Foods in a vote conducted in 2022. As per the reorganization scheme, existing shareholders will receive one equity share for every 22 equity shares held in Tata Coffee by TCPL.