MEMWL board to meet on July 12 on share allotment

Mumbai, July 9 (UNI) The board of directors of Mount Everest Mineral Water Limited (MEMWL), whose 25 per cent stake has been acquired by Tata Tea, will meet on July 12 to allot 50.99 lakh equity shares at an issue price of Rs 140 to the latter.

MEMWL's Extraordinary General Meeting (EGM), held on July 2, had passed a resolution in this regard, MEMWL informed the Bombay Stock Exchange (BSE).

Tata Tea has acquired 25 per cent stake in the Himachal Pradesh-based bottled water manufacturer for nearly Rs 110 crore.

Tata Tea will acquire a further 20 per cent stake in MEMWL through an open offer which will open on July 27 and close on August 16 and will be held for an estimated Rs 100 crore making the total deal worth Rs 210 crore. With this, Tata Tea will hold an aggregate 45 per cent stake in MEMWL.

Tata Tea, which sold 30 per cent stake in Glaceau to Coca Cola for USD 1.2 billion, had drawn a profit of USD 523 million in the deal.

The Company has plans to develop a global business in the bottled water market by establishing MEMWL as the leader in the natural mineral water category.

For this, the Company will diversify the mineral water brands produced by Mount Everest which enjoys a 75 per cent share of mineral water market in India.

UNI