Coca Cola to acquire Glaceau for $4.1 bn, Tata Tea to dilute stakeB

New Delhi, May 25 (UNI) Leading soft drink maker Coca-Cola today announced it will acquire US energy drink maker Glaceau, in which Tata Group has a 30 per cent stake, in an all-cash-deal for 4.1 billion dollars.

The Atlanta-based world's largest aerated drinks firm said in a statement it has reached an agreement with Energy Brands, Inc, also known as Glaceau, for the acquisition.

Tata Tea, which had acquired a 30 per cent stake in Glaceau, which has an annual turnover of 355 million dollars in August last year for 677 million dollars, will receive about 1.2 billion dollars for selling its 30 per cent stake in Glaceau to Coca-Cola Co, it said today.

''Tata Tea has decided to sell after Coca-Cola struck a deal to buy Glaceau for 4.1 billion dollars in cash,'' Vice Chairman R K Krishna Kumar said.

At the time of the transaction, Tata Group had projected Glaceau's annual revenue to nearly double to 700 million dollars in 2007.

Based on the price of Tatas' acquisition, New York-based Glaceau could be valued at close to 2.25 billion dollars. The acquisition price of 4.1 billion dollars represents a significant premium to the price paid by Tata Group.

Its UK subsidiary, Tata Tea (GB) Investments Ltd, held 25 per cent of the stake, and its holding company Tata Sons had the other five per cent.

UNI