Shareholders of Tata Consumer, Tata Coffee, and TCPL Beverages voted on November 12 to accept the plan of arrangement between the three firms. Tata Consumer Products' board of directors authorised the demerger of Tata Coffee's plantation business into TCPL Beverages & Foods, a wholly-owned subsidiary of Tata Consumer Products, in March. It also authorised the merger of Tata Coffee's remaining operations, which include extraction and branded coffee, with Tata Consumer Products.
Existing shareholders will get one equity share for every 22 shares owned in Tata Coffee by Tata Consumer Products. In addition, upon the merging of Tata Coffee's remaining operations with the firm, additional equity shares of the company will be granted to Tata Coffee's equity owners. Tata Coffee shareholders will get 14 shares of Tata Consumer Products for every 55 shares held in Tata Coffee, according to the company's exchange filing. Tata Coffee will also be dissolved, rather than wound up, as a result of the aforesaid demerger and amalgamation, according to the company's petition. Tata Coffee shareholders will get three shares of Tata Consumer Products in exchange for ten shares of Tata Coffee.
