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Tata Tea makes offer for further 20% stake in Mt Everest

Tata Tea makes offer for further 20% stake in Mt Everest
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First Published: Mon, Jun 04 2007. 01 44 PM IST
Updated: Mon, Jun 04 2007. 01 44 PM IST
PTI
Mumbai: Tata Tea on 4 June made an open offer to purchase an additional 20% stake in Mount Everest Mineral Water (MEMW) for Rs95.19 crore.
The Tata group firm will acquire up to 6.8 million equity shares at a price of Rs140 each, to be funded through internal accruals, the company said in a public announcement.
DSP Merrill Lynch is the manager to the public offer.
On 1 June, Tata Tea agreed to buy 25.74% in Mount Everest for Rs115 crore through subscription of preferential shares from promoters of MEMW. It said it would acquire another 20% later.
Tata Tea would subscribe MEMW’s 5.1 million equity shares, constituting 15% of the paid-up capital, on preferential basis.
It would also acquire 3.1 million equity shares — 10.77% equity — held by Foresight Holdings Pvt Ltd, promoter Vinod Sethi and MEMW Managing Director Salim Govani.
Along with the open offer and the share purchase agreement, the total acquisition price to be paid by Tata Tea would be around Rs210 crore.
The company would be responsible for appointing a new management team for day-to-day operations of Mount Everest.
MEMW proposes to use the proceeds of the preferential issue for brand building, marketing, distribution, setting up additional pumping capacity and modernising the bottomline facility.
Shares of Tata Tea plunged 4% and were trading at Rs914.50, while Mount Everest also fell 5% to touch Rs124.95 on the BSE.
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First Published: Mon, Jun 04 2007. 01 44 PM IST
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