Tata Tea to sell 30% Glaceau stake for $1.2bn

Soft drink giant Coca-Cola today announced it will acquire US energy drink maker Glaceau, in which the Tata Group has a 30% stake, for $4.1 billion.

Tata Tea had acquired 30% stake in Glaceau last year for $677 million, and has decided to sell its stake for $1.2 billion. Tata Tea stock zoomed 4% today to Rs 914.

Tata Tea, in a release issued to the BSE today, said the company through its indirect UK subsidiary Tata Tea (GB) Investments had acquired 25% of the shareholding of Energy Brands Inc, USA ("EBI") and Tate Sons through its subsidiary Tata Ltd (UK) had acquired 5% of the shareholding of EBI. The aggregate consideration for the purchase of this 30% holding was $677 million based on an enterprise valuation of $2.2 billion for EBI.

Coca-Cola Company will acquire Energy Brands Inc, also known as Glacéau, and its full range of enhanced water brands including vitaminwater. The acquisition provides The Coca-Cola Company with a strong platform to grow its active lifestyle beverages.

Read more in The Business Standard article.