Tata Tea buys 26 per cent in Mount

02 June 2007

Mount Everest makes the Himalayan brand of bottled water.

Tata Tea said the acquisition would be made through both preferential issue of shares and purchase of shares from the firm's owners at Rs140 a share.

Tata Tea will acquire a 10.74 per cent of the existing equity base from the promoters and also subscribe to a preferential offer of 15 per cent, making for nearly 26 per cent stake of the expanded capital.

The open offer, which was required under SEBI acquisition rules, was also at Rs140 a share.

The deal, which would be financed through borrowings, will add to earnings in 3-4 years time, chief financial officer L. Krishna Kumar said.