Tata Consumer Products on Thursday said that its step-down wholly-owned subsidiary, Tata Consumer Products Overseas Holdings Limited (TCP Overseas), acquired a 23.3 percent stake in the South African tea brand Joekels Tea Packers.

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The fast-moving consumer goods major informed the bourses that TCP Overseas has decided to buy the share capital in Joekel from its joint venture partners through Tata Consumer Products UK Group Ltd, a direct wholly-owned subsidiary of the company.

On completion of the acquisition, TCP Overseas’ shareholding in Joekels will rise to 75 percent from the current 51.7 percent. The remaining 25 percent stake of the company will be retained by its JV partners.

The said acquisition deal is being considered for a value of nearly ZAR 91 million, which is approximately Rs 43.65 crore besides the adjustment amount based upon the conditions in the transaction agreements, which shall be paid later.

The transaction agreements of the deal will constitute terms of the Share Purchase Agreement as well as the Shareholders Agreement that are finalised and executed among Joekels, its JV partners and TCP Overseas.

In the September 2022 quarter, Tata Consumer Products reported an 11 percent annual revenue growth despite a difficult demand environment. The company’s revenue stood at Rs 3,363 crore, marginally higher than the CNBC-TV18 poll estimate of Rs 3,340. Net profit was at Rs 328 crore, beating the estimate of Rs 270 crore.

Shares of Tata Consumer Products closed 0.38 percent lower at Rs 776.90 on BSE.

https://www.cnbctv18.com/earnings/tata-consumer-q2-results-revenue-jumps-despite-tea-price-cuts-salt-business-14991841.htm

(Edited by : CH Unnikrishnan)

First Published:Dec 29, 2022 5:50 PM IST