Tata Global Beverages to sell stake in Zhejiang Tata Tea

The Dollar Business Bureau 

Tata Global Beverages Ltd (TGBL) has decided to exit from its Chinese joint-venture Zhejiang Tata Tea Extraction Company Ltd. (ZTTECL).

The TGBL board approved the disinvestment decision on Monday, after it held a meeting and "deliberated and accorded an in principal approval" to divest its stake in the JV ZTTECL "at an estimated enterprise value of Rs 33 crore", TGBL said in a statement.

This also means that TGBL is finally exiting its China operations. Last August, ex-Tata Chairman Cyrus Mistry had indicated that it will soon be exiting the JV.

"We are looking at restructuring the business there. In what way this will be done, that has to be looked into," Mistry said.

“The sale is subject to necessary approvals. The transaction will also be subject to completion of negotiations, definitive agreements and satisfaction of conditions precedent,” the company said in a BSE filing.

The Indian tea giant also said that the transaction would be intimated in accordance with the Regulation 30 of the SEBI (List Obligations and Disclosure Requirements), Regulations, 2015, on completion of the transaction.

TGBL (formerly known as Tata Tea) entered into a joint venture with Zhejian Tea Import and Export to manufacture and sell green tea and other value-added products.