Tata Consumer Products Overseas Holdings (TCP Overseas), a step-down wholly-owned subsidiary of the company through Tata Consumer Products UK Group, will be purchasing 23.3% of the share capital of Joekels Tea Packers, Republic of South Africa, from its Joint-Venture (JV) partners, as per the terms of the Share Purchase Agreement and the Shareholders Agreement, finalised and executed, amongst TCP Overseas, Joekels and the JV Partners.
The acquisition of the stake by TCP Overseas from the JV partners is for a consideration value of around Rs 43.65 crore plus the adjustment amount (which will be payable later, basis the conditions mentioned in the Transaction Agreements).
The said transaction is subject to the fulfilment of various terms and conditions as specified in Transaction Agreements. As a result of the acquisition, the holding of TCP Overseas in Joekels will increase from 51.7% to 75% of the equity share capital and the remaining 25% is held by the joint venture partners.
Under Joekels, Tata’s Tetley has made inroads in South Africa, with Tetley Green tea becoming the leading green tea in the local market just six months into launch in 2017. Joekels also owns the leading kids tea brand on the market, Tea4Kidz. Joekels offers seven renowned brands, and Laager Rooibos is now the second largest Rooibos (red tea / redbush tea) brand in the world.