The homegrown auto major has called a meeting of the secured creditors as well as equity shareholders of the company on March 5 to consider and approve the transfer of the passenger vehicles business unit to TML Business Analytics Services Ltd as a going concern on a slump sale basis for a lump sum consideration, Tata Motors Ltd (TML) said. This will be settled by way of issuance and allotment of 9,41,70,00,000 equity shares of the transferee company at Rs 10 each, it added.
Tata Consumer to buy Kottaram Agro Foods for Rs 155.8 crore
Tata Consumer Products is set to acquire Bengaluru-based Kottaram Agro Foods for Rs 155.8 crore to expand its product portfolio. Kottaram Agro Foods (KAF) is primarily engaged in the business of healthy breakfast cereals and millet-based snacks under the trademark Soulfull.
The company will acquire 100 per cent of the issued and paid-up equity share capital of KAF and the move is consistent with TCPL’s strategic intent to expand its product portfolio, and participate in multiple consumption occasions, the Tata group firm said in a statement.
“The said acquisition is in line with the company’s strategic intent of entering into new adjacent categories in the food space,” TCPL said.
This marks its entry into multiple new consumption occasions with new adjacent product categories, it added.
“This acquisition will allow TCPL to expand its product portfolio into the fast-growing “on the table’’ and on the go categories and to participate in newer consumption occasions. There are also significant synergies possible with the existing business of TCPL in areas spanning distribution, procurement, and logistics,” the company said. Over the cost of acquisition, TCPL said, it has “consideration of Rs 155.8 crore.” The transaction is expected to be completed in the Q4 of FY 2021, according to TCPL, formerly known as Tata Global Beverages.
Brand Soulfull was launched in 2013 and in FY 2019-20.