Business Daily from THE HINDU group of publications
Friday, Sep 15, 2006
ePaper
Business Daily from THE HINDU group of publications Friday, Sep 15, 2006 ePaper |
|
|
|
|
|
|
|
|
Corporate - Preferential Allotments
Our Bureau
Stake up The preferential issue will raise Tata Sons' stake in Tata Tea. Pending raising of funds, the company would resort to short-term bridging finance.
Mumbai , Sept. 14 Tata Tea will raise up to Rs 460 crore through a preferential issue of equity shares with attached warrants to its chief promoter Tata Sons Ltd, its Board decided on Thursday. The company will also seek shareholder approval for raising additional capital not exceeding 20 per cent of the existing capital including the preferential issue, though for the present it is proposed to proceed only with the preferential issue, said a statement from the company. The preferential issue will part-fund Tata Tea's acquisition of 30 per cent stake in the US-based Energy Brands Inc for $677 million (Rs 3,150 crore), arguably the largest overseas purchase by an Indian private company. Of the total equity contribution required, $192 million (Rs 890 crore) will be provided by Tata Tea and $58 million (Rs 270 crore) by Tata Sons Ltd. The acquisition is being made through Tata Tea's UK subsidiary Tata Tea (GB Ltd).
In line with norms
The market-related pricing of the preferential shares and the warrants and other terms will be strictly in accordance with the relevant SEBI regulations and will be subject to such approvals as may be required, said a statement from the company. Pending raising of all these funds, the company would resort to short-term bridging finance as may be required. The preferential issue would raise Tata Sons' stake in Tata Tea, though by how much would depend on the details of the issue, said market watchers. Tata Sons' stake in Tata Tea was 15.06 per cent in July 2006; the promoter group as a whole (Tata Industries, Tata Chemicals, and others) owned 28.95 per cent. Tata Tea on Thursday rose marginally on the bourses; on the BSE, its scrip ended Rs 5.7 higher over the day to close at Rs 766.30, before the Board decision was announced.
Related Stories: More Stories on : Tea | Preferential Allotments | Tata Tea Ltd | Overseas Investments
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
