Friday, June 1, 2007

Tata Tea to acquire majority stake in Mt Everest

Everest will be making a preferential allotment to Tata Tea, reports CNBC-TV18. The company’s promoters also plan to sell 11% stake to Tata Tea. With this, Tata Tea is set to acquire majority stake in the company.

Tata Tea will also make an open offer to Mt Everest shareholders at Rs 145-150 per share. The board will convene on June 1 to approve the acquisition. It will invest nearly Rs 250 crore for the stake buy.

Post open offer, Tata Tea aims to hold 42% stake and get management control of Mt Everest. CNBC-TV18 reported on Tata Tea's bid for Mt Everest in November 2006.

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