In a significant corporate development, Tata Coffee Ltd revealed on December 28, 2023, that Tata Coffee Limited (TCL) is set to merge with Tata Consumer Products Ltd (TCPL) and TCPL Beverages & Foods Ltd (TBFL) effective January 1, 2024. The merger announcement, made through an exchange filing, includes details about the record date for the allotment of shares to TCL shareholders.
Scheme Effectiveness and Company Dissolution
With the merger scheme slated to become effective on January 1, 2024, Tata Coffee Limited (TCL) clarified in the filing that the company would dissolve without winding-up. As a consequence, all Directors and Key Managerial Personnel of the company would vacate their positions on that date without further action required.
Impact on Tata Coffee Limited Shareholders
Following the merger, Tata Coffee Limited shareholders will undergo a transition where they will be allotted shares of Tata Consumer Products Ltd (TCPL). The company specified that the record date for the allotment of TCPL shares to TCL shareholders is set for January 15, 2024.
In the filing, TCL elaborated, stating, “The Record Date, for the purpose of determining the shareholders of TCL to whom equity shares of TCPL would be allotted pursuant to the demerger and the Amalgamation in accordance with Clause 13.1 and Clause 20.1, respectively, is Monday, January 15, 2024.”
Tata Coffee Share Merger Ratio
As an integral part of the merger scheme, TCL’s plantation businesses will merge with TCPL. Shareholders will receive one equity share of TCPL for every 22 equity shares held in TCL concerning the plantation businesses. For the remaining business segments, TCPL will issue 14 equity shares for every 55 equity shares held in TCL.
This merger not only signifies a strategic realignment within the Tata Group but also prompts TCL shareholders to pay attention to the merger ratio and record dates to make informed decisions regarding their investments in the evolving landscape of Tata Consumer Products Ltd.
