Tata Global Beverages to sell stake in Zhejiang Tata Tea for Rs 33 crore
The company received the boards approval to divest stake in the joint venture.
Tata Global Beverages Ltd (TGBL) will be selling its stake in joint venture Zhejiang Tata Tea Extraction Company for Rs 33 crore. The board of TGBL approved the decision to divest its stake in its JV.
This means that the company is finally exiting its China operations. Earlierin August 2016 former Chairman of the company Cyrus Mistry had indicated it will be exiting the JV.
Regarding China operations, Mistry had said, "We are looking at restructuring the business there. In what way this will be done, that has to be looked into."
The company in a filing on BSE said that the sale is subject to necessary approvals. The transaction will also be subject to completion of negotiations, definitive agreements and satisfaction of conditions precedent, it added.
It further said that the transaction would be intimated as required under Regulation 30 of the SEBI (List Obligations and Disclosure Requirements), Regulations, 2015, on completion of the transaction.
TGBL (formerly known as Tata Tea) had entered into a JV with Zhejian Tea Import and Export to manufacture and market green tea and other value added products.