Tata Global to buy 4% more in Mount Everest

Tata Global Beverages (TGB) today said it will purchase an additional 1.417 million shares, translating to a 4.17% stake, in Mount Everest Mineral Water (MEMW) for around Rs 28 crore.

TGB's board of directors have approved purchase of 14,17,632 equity shares of MEMW from Foresight Holdings and Vinod Sethi, promoters of MEMW, it said in a filing to the Bombay Stock Exchange (BSE).

At the end of December 2011, Tata Global Beverages held 13,910,653 shares (40.92%) in MEMW.

The proposed purchase of shares will be made on or before March 31, 2012, at a price of Rs 198 per share.

Shares of mineral water producer MEMW closed at Rs 105.90 apiece, up 2.57% over their previous close on the BSE.

The purchase of shares were subject matter of a put-option agreement entered into with the promoters at the time of the acquisition of MEMW.

"The board has approved amendments to the said agreement to reduce the number of shares which are the subject matter of the said agreement," the filing said.

The board has also approved amendments to provide that the promoters would be entitled to exercise their option commencing from the financial year 2012-13.

Amendments also reduce the interest component in the calculation of the put option price from 10% per annum to approximately 7%, the filing added.

Tata Global Beverages is a global beverage business and the world’s second-largest tea company.

Shares of Tata Global Beverages closed at Rs 109.85 apiece, up 1.15% over their previous close on the BSE.