Tata Tea agrees to sell Glaceau stake to Coca Cola
May 26, 2007

In response to an offer received by Energy Brands (EBI) from The Coca Cola Company for acquiring 100 per cent of the capital of EBI, Tata Tea (GB) Investments (UK) and Tata Ltd (UK) have conditionally agreed to sell their shares to The Coca Cola Company by the end of the year for an approximate consideration of $1.2 billion, which is subject to adjustment for certain transactions and other costs. This consideration reflects an underlying enterprise value of US $4.2 billion of EBI.

Tata Tea, through its indirect UK subsidiary Tata Tea (GB) Investments, had acquired 25 per cent of the shareholding of Energy Brands, USA, and Tata Sons through its subsidiary Tata Ltd (UK) had acquired 5 per cent of the shareholding of EBI. The aggregate consideration for the purchase of the entire 30-per cent holding was US $677 million based on an enterprise valuation of US $2.2 billion of EBI.