Tata Tea to acquire Mount Everest Mineral Water Ltd

The Board of Directors of Tata Tea Ltd at its meeting held on June 01, 2007, inter alia, has approved the acquisition of stake in Mount Everest Mineral Water Ltd.

The execution of a Share Subscription agreement dated June 01, 2007 between the Company, Mount Everest Mineral Water Ltd (MEMW), a Company incorporated under the Companies Act, 1956, Foresight Holdings Pvt Ltd and Mr. Vinod Sethi, Promoters of MEMW for the issue and allotment of 5099396 equity shares of MEMW at a price of Rs 140 per share on Preferential basis, subject to approval of the shareholders of MEMW and such other approvals as may be necessary.

The execution of the Share Purchase Agreement dated June 01, 2007 between the Company, Foresight Holdings Pvt Ltd ("FHPL"), Mr. Vinod Sethi MEMW, and Mr. Salim Govani, Managing Director of MEMW and the proposed acquisition of 22,50,000 equity shares of MEMW from FHPL and 8,60,440 equity shares from Mr. Vinod Sethi constituting in the aggregate 10.764% of the paid up equity capital of MEMW at a price of Rs 140 per equity share, on terms and conditions more particularly set out in the Share Purchase Agreement

Since the proposed investment and acquisition of shares of MEMW by the Company will trigger the provisions of SEBI (Substantial Acquisition of Shares & Takeover), Regulations, 1997 ("Takeover Code") the Company proposes to make a public announcement to acquire from the public shareholders of MEMW ("Open Offer"), including but not limited to those tendered pursuant to the Open Offer up to 20% of the emerging paid-up capital of MEMW at a price of Rs 140 per equity share or such other higher price as may be directed by SEBI in compliance with the requirements of Regulation 10 and 12 of the Takeover Code. The public announcement is required to and shall be made in terms of Regulation 15 of the Takeover Code in newspapers within the time prescribed under the aforesaid Regulations.

Source : Equity Bulls

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