Mumbai: Tata Tea Ltd’s overseas unit and the European Bank for Reconstruction and Development (EBRD) will acquire 51% in a Russian firm Grand, the two firms said in separate statements.
Grand is a Russian branding, packaging and distribution company and a well known player in coffee and tea sector of that country, EBRD said in a release on its website.
The acquisition will help Tata Tea strengthen its presence in Russian beverages market, the India tea company said on Thursday, adding that Tata Tea will hold 33.2%, while EBRD will hold 17.8% after the acquisition.
The founders of the Russian firm will hold the balance 49%, Tata Tea added. The acquisition would be completed during the first half of 2009, it said.
No further financial details were avilable.
At 12:00 p.m., shares in Tata Tea were up 1.84% at Rs554 in a firm Mumbai market.