Alert! This Tata company to ‘dissolve’ on January 1, 2024 – What will happen to your shares?
TCL-TCPL-TBFL merger news: Tata Group company Tata Coffee Ltd on Thursday, December 28, 2023, said that Tata Coffee Limited (TCL) will merge with Tata Consumer Products Ltd (TCPL) and TCPL Beverages & Foods Ltd (TBFL) effective January 1, 2024. In an exchange filing, Tata Coffee Limited (TCL) also announced the record date for the allotment of shares to TCL shareholders.
“With the scheme becoming effective on January 1, 2024, the Company will get dissolved without winding-up, and accordingly office of all Directors and Key Managerial Personnel of the company shall stand vacated on that date, without further course of action,” Tata Coffee Limited said in the filing on December 28.
What will happen to the shareholders of Tata Coffee Limited?
After the merger of Tata Coffee Limited and Tata Consumer Products Limited, the shareholders of Tata Coffee Limited will be allotted shares of TCPL. The company also announced that the record date for the allotment of TCPL shares to TCL shareholders will be January 15, 2024.
“The company further said that 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,” TCL said in the filing.
Tata Coffee share merger ratio
As a part of the merger scheme, the plantation businesses of TCL will be merged with TCPL. For this, the shareholders will get one equity share of TCPL for every 22 equity shares held in TCL. For the remaining business, TCPL will issue 14 equity shares of TCPL for every 55 equity shares held in TCL.
