Tata Global Beverage completes acquisition of Russia’s SuntyCo
18 Aug 2012
Tata Global Beverages Ltd has completed the acquisition of the remaining 49 per cent stake in SuntyCo Holding Limited, the owner of the 'Grand' business in Russia, the company said in a filing with the Bombay Stock Exchange (BSE).
Tata Global Beverage's arm Kahutara Holdings Limited had, in March this year, issued a notice of exercising a call option to acquire the remaining 49 per cent of Suntyco Holding.
In its stock market disclosure, Tata Global Beverage Ltd (formerly Tata Tea) did not disclose the amount involved in the transaction.
The Tata group firm had acquired 51 per cent in the Russian firm along with European Bank for Reconstruction & Development (EBRD), three years ago, from Alexander Borisov.
While Tata Global Beverage arm held a majority 51 per cent stake in SuntyCo, it had effective voting power of 27.5 per cent only.
Kahutara Holdings Limited, a 65 per cent subsidiary of Tata Global Beverages, which held 51 per cent in Suntyco Holding, had an irrevocable call option and SuntyCo promoter Celeste Assets had an irrevocable put option to buy/sell the balance 49 per cent in Suntyco Holding, to be exercised in full in March 2012 or March 2013 or March 2014. The put and call option price was based on an agreed formula linked to the past cash profits.
