Tata Consumer Products – Simplifying business structure to create synergy: Motilal Oswal

BQ Blue’s special research section brings together in-depth and quality research reports on stocks and the economy from India’s leading brokers, asset managers and research agencies. These reports offer BloombergQuint subscribers the opportunity to broaden their understanding of companies, sectors and the economy.

Tata Consumer Products Ltd. announces the reorganization of its operations in India and abroad in order to simplify the corporate structure, align and synergize its activities.

The company made two announcements focused on creating a single consumer products entity by consolidating the branded coffee business of Tata Coffee Ltd. (excluding the coffee plantation segment) with Tata Consumer Products and also buying the minority stake in Tata Consumer Products UK. business.

In aggregate (including the split and merger), Tata Consumer Products will issue three shares of Tata Consumer Products for every ten shares held by them in Tata Coffee.

Acquisition of 10.15% ordinary shares of its existing overseas subsidiary Tata Consumer Products UK from Tata Enterprise (Overseas) AG, Switzerland for a total purchase price of Rs 5,708 million.

The consideration payable will be satisfied by the issue and allotment of 74,59,935 equity shares of Tata Consumer Products on a preferential basis.

Click on the attachment to read the full report:

WARNING

This report is written by an external party. BloombergQuint does not guarantee the accuracy of its content and is in no way responsible for it. The content of this section does not constitute investment advice. For this, you should always consult an expert based on your individual needs. The views expressed in the report are those of the authoring entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify or distribute content without permission from the original owner.