Tata Global Beverages is to issue new equity shares of the company to the shareholders of Mount Everest Mineral Water Ltd on June 8, 2015. With the High Court of Calcutta approving the scheme of amalgamation of Mount Everest Mineral Water Ltd with Tata Global Beverages Ltd late last month, the company has informed the bourses that it has fixed the record date.
In November 2013, the boards of directors of Tata Global Beverages (TGBL) and Mount Everest Mineral Water (MEMW), in their respective meetings, had approved a proposal to merge the two firms.
MEMW is a subsidiary of TGBL, and TGBL held 50.07 per cent stake in MEMW at that time. The merger allowed for three shares of TGBL for every four shares of Mount Everest.
The companies said the merger would enable increased operational efficiencies and better synergy between both businesses. With TGBL’s focus on the natural beverages business which includes water, the proposed merger would facilitate the growth of the Himalayan natural mineral water brand owned by MEMW.
The merger was proposed to be undertaken through a court approved scheme of amalgamation, which would be subject to various statutory approvals.