Tata Tea to form a new company and hive off North India Plantation Operations

Tata Tea Ltd has announced that the Board of Directors of the Company at its meeting held on October 31, 2006, inter alia, has decided, subject to receipt of all necessary approvals, to transfer the business and undertakings of North India Plantation Operations (NIPO) of the company comprising, inter-alia, all its tea estates and factories (other than Packeting centres & the Referral hospital at Chubwa) located in the States of Assam and West Bengal including the assets and facilities located in these estates to a new company (to be formed) on the basis of a Valuation carried out by a reputed firm of valuers at a transaction value of Rs 359 crores. The transfer will take effect from April 01, 2007. In the new entity, equity participation by International Finance Corporation, Infrastructure Leasing & Finance, Globally Managed Services, Tata Tea, corporate professionals and the employees of all categories of NIPO is envisaged.

The Board is of the view that the decision to divest from NIPO would enable the company to focus on branded business which would benefit the shareholders of the company.

Source : Equity Bulls

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