Hyderabad, Sept 4: Consolidated Coffee Ltd (CCL), a Tata Tea subsidiary, has proposed to list its shares on the Mumbai, Hyderabad and National Stock Exchanges to provide enough liquidity to its shares subsequent to the amalgamation with Asian Coffee Ltd (ACL), Coffee Lands Ltd (CLL) and two of its subsidiaries, Charagni Ltd (CL) and Veerarajendra Estates Ltd (VEL). The company has also decided to offer an odd lot scheme to its shareholders to enable them to dispose off the odd lots arising out of the merger process at market prices.The CCL board, which met on Thursday, took a decision to this effect after considering the valuation reports prepared by N M Raiji & Co and A F Ferguson & Co, the joint valuers appointed earlier in June. The board has accepted the report.
Based on the recommendations of the reports, the share swap ratio will be one equity share of CCL for one equity share of CLL (1:1), and six equity shares of ACL (1:6). The joint report was also independently confirmed by the investmentbanking division of ANZ Grindlays Bank Ltd.
CCL produces and markets the filter coffee under the "Coorg" brand and "Coorg Double Roast" mixed with chicory blend and also markets under the brands of Tata Cafe and Tata Kaapi. The other subsidiary of Tata Tea, ACL, is an export oriented unit.
After amalgamation, the combined entity will become stronger in the domestic coffee market, as the new company will become a primary producer of coffee and instant coffee and a direct marketer of branded products, the release said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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