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Tata Sons to raise stake in TGBL, Tata Chemicals for Rs 1,458 cr

TGBL and Tata Chemicals said the proposed date of acquisition is on or after September 18

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Press Trust of India New Delhi
Last Updated : Sep 12 2017 | 10:58 AM IST
Tata Sons, the promoter of major Tata group companies, will hike its shareholding in Tata Global Beverages and Tata Chemicals by up to 6.84 per cent and 4.39 per cent respectively for a total estimated value of Rs 1,458 crore.

Tata Sons will acquire up to 4.31 crore shares or 6.84 per cent stake in Tata Global Beverages Ltd (TGBL) from Tata Chemicals as a part of restructuring of its investment portfolio, TGBL said in a regulatory filing.

Tata Chemicals said Tata Sons will acquire up to 1.11 crore shares or 4.39 per cent stake in the company from Tata Global Beverages Ltd (TGBL).

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TGBL and Tata Chemicals said the proposed date of acquisition is on or after September 18 and the shares are proposed to be acquired at the prevailing price on the date of acquisition.

However, TGBL said that the acquisition price would not be more than 25 per cent of Rs 179.99 per share. At the indicated price, the transaction is estimated to be around Rs 777.10 crore.

While, Tata Chemicals said that the acquisition price would not be more than 25 per cent of Rs 609.23 per share. At the indicated price, the transaction is estimated to be around Rs 681.45 crore.

Before proposed acquisition, Tata Sons' holding in the TGBL and Tata Chemicals stood at 22.63 per cent and 19.35 per cent respectively.

Shares of TGBL Bank were trading 1.15 per cent higher at Rs 211.45 on BSE. Shares of Tata Chemicals were trading 1.28 per cent higher at Rs 626 apiece on BSE.

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First Published: Sep 12 2017 | 10:58 AM IST

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