Tata Sons raises stake in TGBL, Tata Chem to cut cross-holding
Tata Sons Tuesday raised stakes in Tata Chemicals and TGBL, buying for about Rs 1,600 crore the shares held by the two firms in each other so as to reduce crossholdings among the group firms. The holding company of the $104 billion group has also bought shares worth about Rs 1,634 crore in Tata Motors. In a regulatory filing, Tata Chemicals said it has sold 4,31,75,140 equity shares of face value of Re 1 each of Tata Global Beverages Ltd (TGBL) to Tata Sons Ltd at price of Rs 213.35 per share fetching around Rs 922 crore. Similarly, TGBL said it has sold 1,04,80,000 equity shares of face value of Rs 10 each of Tata Chemicals Ltd (TCL) constituting 4.11 per cent of the issued capital of TCL to Tata Sons as a market transaction. The shares were acquired at Rs 642.55 apiece for Rs 673.39 crore.
The promoter of the major SIMPLE STRUCTURE The stake buy was undertaken with an estimat-ed value of Rs 1,600 crore
Tata Sons has also bought shares worth about Rs 1,634 crore in Tata Motors
• Tata Sons has been on a drive to reduce cross-holdings within the group under the new Chairman as part of restructuring its investment portfolio
operating Tata companies has also acquired nearly 1.7 per cent stake in Tata Motors that would entail outgo of Rs 1,634 crore. In June, Tata Sons had acquired an additional 2.89 per cent stake in Tata Motors for a little over Rs 3,782 crore from Tata Steel through open market transactions.
As on quarter ended June 30, Tata Sons had 31.6 per cent stake in Tata Motors, according to the information available with BSE. Tata Sons has been on a drive to reduce cross-holdings within the group under the new Chairman N Chandrasekaran, as part of restructuring its investment portfolio. He has been pushing for simplification of group structure and remove cross holdings.
As on quarter ended June 2017, Tata Chemicals held 7.10 per cent stake in TGBL. During the period, Tata Sons had 23.5 per cent stake in Tata Global Beverages and 19.35 per cent in Tata Chemicals. TGBL and Tata Chemicals last week said the shares are proposed to be acquired at the prevailing price on the date of acquisition.