Tata Global Beverages (TGBL) has decided to merge its subsidiary Mount Everest Mineral Water (MEMW) with itself for better synergy and operational efficiency.
The directors of TGBL and MEMW in their respective meetings held on Tuesday approved a proposal to this effect. Currently TBGL holds 50.07 per cent stake in MEMW. The exchange ratio recommended by the valuers and approved the respective boards is 3 shares of TGBL (face value of Re.1 each) for every 4 shares of MEMW (face value of Rs. 10 each).
“With TGBL’s focus on the natural beverages business which includes water, the proposed merger will facilitate the growth of the Himalayan natural mineral water brand owned by MEMW. Himalayan water will have the benefit of TGBL’s resources in India as well as other global markets, which will help unlock the power of this brand. The merger will help increase long term value for shareholders and for investors,” TGBL said.
Meanwhile, Tata Global Beverages reported a consolidated net profit of Rs. 180 crore for the second quarter, up 51 per cent from Rs. 119 crore in the same period last year. Consolidated income from operations increased by 4 per cent to Rs. 1,933 crore from Rs. 1,865 crore.
On a standalone basis the company reported a net profit of Rs. 173 crore as compared to Rs. 94 crore in the same period last year.