TGBL.L Regulatory News (TGBL)

14 Sep 2006 12:39

Tata Tea Limited14 September 2006 As already announced the Company together with Tata Sons Ltd will be acquiringa stake in Energy Brands Inc. of U.S.A. (Glaceau(R)) through the Company'sU.K. subsidiary, Tata Tea(GB) Ltd(TTGB). Of the total equity contributionrequired for this purpose $192 million (about Rs.890 crores) will be provided bythe Company and $58 million (about Rs.270 crores) by Tata Sons Ltd. At its meeting held today the Board of Directors of the Company decided thatout of total amount of about Rs.890 crores required to be invested in TTGB, asum of about Rs.420/460 crores be raised through a Preferential issue of equityshares with attached warrants to the main promoter company namely Tata Sons Ltd.The market-related pricing of the shares and the warrants and other terms willbe strictly in accordance with the relevant SEBI regulations and will be subjectto such approvals as may be required. The approval of the shareholders will besought for raising additional capital not exceeding 20% of the existing capitalincluding the Preferential issue mentioned above, though for the present it isproposed to proceed only with the Preferential issue. The balance amount required for the acquisition would be raised through sale bythe Company of certain investments and from its own resources. The above method of financing will minimise the cost of the acquisition to theCompany. Pending raising of all these funds, the Company would resort toshort-term bridging finance as may be required. This information is provided by RNS The company news service from the London Stock Exchange