Tata Consumer Products Ltd (TCPL) announced on Thursday that it has acquired 23.3 per cent more shares in South Africa-based Joekels Tea Packers through a step-down subsidiary for Rs 43.65 crore. Tata Consumer Products Overseas Holdings Ltd (TCP Overseas), a step-down wholly-owned subsidiary of Tata Consumer Products UK Group, “has decided to purchase 23.3 per cent of the share capital of Joekels Tea Packers, Republic of South Africa from its Joint Venture partners,” the company said in a statement.
This is in accordance with the terms of the finalised and executed share purchase agreement and shareholders’ agreement between TCP Overseas, Joekels, and the JV Partners, it added.
“The above acquisition of the stake by TCP Overseas from the JV partners is for a consideration value of ZAR 91 million (INR 43.65 crore) plus the adjustment amount (which will be payable later, basis the conditions mentioned in the Transaction Agreements). The said transaction is subject to the fulfilment of various terms and conditions as specified in Transaction Agreements,” the statement said
The Tata group FMCG arm stated that the stake was acquired for a consideration value of Rs 43.65 crore plus the adjustment amount.
The acquisition increases TCP Overseas’ “holding in Joekels from 51.7 per cent to 75 per cent” of the equity share capital. The remaining 25% stake is held by the joint venture partners, according to the regulatory filing.