Tatas to sell stake in energy brands for $1.2 billion
Tata Sons, India's largest private sector group, on Friday said it was selling the 30 percent stake it held in the US-based Energy Brands Inc for $1.2 billion and thereby make a neat profit of $523 million.
The stake, which was acquired for $677 million, is being sold to the Coca-Cola Company, which will become a 100-per cent owner of energy brands better known for its brand Glaceau.
"This consideration reflects an underlying enterprise value of $4.2 billion of energy brands," the Tatas said in a statement. Based on the cost of purchase, the enterprise value of the company was $2.2 billion.
Tata Tea had a 25-per cent stake in energy brands through its Britain-based arm Tata Tea (GB) Investments, while its parent company Tata Sons Ltd had a five percent stake.
The Tata group has 93 companies in its fold with interests across seven business sectors and revenues of $22 billion.