Tata Tea to buy 45% stake in Mt Everest Mineral Water
Tata Tea agrees to buy 25.74 pc stake in Mount Everest Mineral Water Ltd for around Rs 115 crore and will acquire another 20 pc later.business Updated: Jun 01, 2007 20:20 IST
Tata Tea, which recently sold its stake in US energy drinks maker Glaceau to Coca Cola Company for over a billion dollars, on Friday said it has agreed to buy 25.74 per cent stake in Mount Everest Mineral Water Ltd for around Rs 115 crore and will acquire another 20 per cent later.
The company informed the Bombay Stock Exchange that the acquisition of 25.74 per cent stake would be through subscription of preferential shares and purchase of shares from promoters of MEMW.
Tata Tea will subscribe 50.99 lakh equity shares of MEMW on preferential basis at Rs 140 per share, constituting 15 per cent of the paid up capital on a fully diluted basis.
Further, Tata Tea will also aqcuire 31.10 lakh equity shares of MEMW held by Foresight Holdings Pvt Ltd and Vinod Sethi, promoter MEMW, and Salim Govani, Managing Director MEMW at Rs 140 per share. This amounted to 10.77 per cent of the company's equity capital.
Tata Tea would also make an open offer to acquire 20 per cent on the emerging paid up capital of MEMW at a price of Rs 140 per share as per SEBI requirements. The total acquisition price would be around Rs 210 crore.