Tata Tea board clears raising debt upto Rs 460 cr

Mumbai, Sep 14 (UNI) The board of Tata Tea Ltd today approved raising in the range of Rs 420-Rs 460 crore by way of a preferential issue of shares to Tata Sons.

In a notice to BSE, the company said it would use the money to partly fund its acquisition of a 30 percent stake in US-based Energy Brands Inc which makes enhanced water brand Glaceau.

Tata Tea will be contributing USD192 million to USD677-million deal, the largest ever overseas equity investment by an Indian company, while Tata Sons will provide USD58 million and the balance amount will be raised through a sale of some investments and its own resources, according to a statement from Tata Tea.

UNI SN MJ AG1947