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Shareholders of Tata Consumer Products Ltd. (TCPL), Tata Coffee Ltd., and TCPL Beverages and Foods Ltd. approved the reorganisation scheme of the three companies in a vote held on November 12.

Under the scheme, Tata Coffee (TCL) will be merged with Tata Consumer Products and its wholly-owned subsidiary.

Under the reorganisation scheme, the plantation business of Tata Coffee would be merged into TCPL Beverages & Foods, a wholly-owned subsidiary of TCPL.

In exchange, TCPL will be issuing 1 equity share for every 22 equity shares held in Tata Coffee to existing shareholders.

The rest of the business of Tata Coffee will be merged with TCPL, in exchange for the issuance of 14 equity shares of TCPL for every 55 equity shares held in Tata Coffee to the existing shareholders.

Following the merger, Tata Coffee will stand dissolved though without being wound up. Existing shareholders of the company will receive 3 shares of TCPL for every 10 shares that they hold as of the record date for the amalgamation.

The proposal for the scheme was passed by the requisite majority of three-fourths of the shareholders in attendance at the meeting.

In March this year, Tata Consumer Products (TCPL) announced the merger of all businesses of Tata Coffee with itself as part of a reorganisation plan in line with its strategic priority of unlocking synergies and efficiencies.

Shares of Tata Consumer Products ended 0.6 percent higher at Rs 772.75.