Tata Group reaped a gain of $523 million from its decision today to sell 30 per cent stake in Glaceau to the world's largest beverages company Coca-Cola.
Besides, Tata Tea's market value has risen more than Rs 1,400 crore (about 340 million dollars) as its share price soared 35 per cent since April 25 when reports of Coke's interest in Glaceau first came in.
Today's announcement sent Tata Tea's share price soaring o a new life-time high, as investors welcomed the group's decision to sell its stake for nearly double the August 2006 acquisition price of $677 million. Coca-Cola will acquire 100 per cent stake in Glaceau, also known as Energy Brands Inc, for $4.1 billion, valuing Tatas' stake at $1.2 billion.
The Indian firm said in a separate regulatory filing it has agreed to sell its stake by the end of this year.
Tata Tea had acquired 25 per cent of Energy Brands, while Tata Sons had purchased a five per cent stake for an aggregate amount of $677 million, putting an enterprise value of $2.2 billion to the North American firm.
Tata Tea' shares today closed nearly four per cent higher at Rs 913.65 on the Bombay Stock Exchange, after hitting a life-time high of Rs 941.25 earlier in the day.
Its shares had jumped 15 per cent on April 25, and gained another 4 per cent on May 22 after the US giant filed a pre-merger notification with the US regulators for the deal.
In total, Tata Tea shares have gained 35.7 per cent from Rs 673 as on April 24.
