Streamlining its business, the Tata group transferred its consumer products businesses from Tata Chemicals Ltd (TCL) to Tata Global Beverages Ltd (TGBL).
In a stock exchange filing, the companies said, "The Boards of Directors of Tata Global Beverages Limited (TGBL) and Tata Chemicals Limited (TCL), at their respective meetings held today, have approved the de-merger of the consumer products business of TCL into TGBL through a National Company Law Tribunal approved scheme of arrangement."
Key brand names like Tata Salt, Tata Tea, Tata Sampann and Tetley will now come under a single merged entity.
Under the scheme, each shareholder of TCL will be 1.14 new equity shares of TGBL for every 1 equity share held in TCL. This means that a shareholder with 100 shares in TCL will receive 114 shares in TGBL. The press release said that the entitlement ratio was approved by the respective boards based on the recommendations of independent valuers.
Further, Tata Global Beverages will be renamed Tata Consumer Products.