Tata Tea and Tetley looking for overseas acquisitions

10th August 2005: Integrated tea company Tata Tea Ltd is looking for acquisitions in tea-related business overseas which would be funded by cash balances held with the firm, its chairman Ratan Tata said. The company is planning to increase its business for both Tata Tea and Tetley, he added. It was eyeing the markets of North America and South America with primary focus on beverages, ready-to-drink tea and herbal tea. Tata said the company recently launched its brands in South Africa and was looking at the market in a conscious manner.

Stating that Tetley was recognised all over the world, he said that the idea was to establish a global brand. The company had already restructured South India plantation operations by transferring 16 estates of Munnar to Kanan Devi Hills Plantations Company Pvt Ltd. To a question, Tata Tea Vice-Chairman R K Krishna Kumar said for North Indian estates, the company was working with an external agency looking at ways and means for improving the quality of life and income of workers.

Vasishti Detergents Ltd. (VDL) may be merged with Hindustan Lever Ltd (HLL)

10th August 2005: HLL said that it will consider amalgamation of Vasishti Detergents Ltd (VDL) with the company. The Board of Directors will meet on August 11 to consider a proposal for amalgamation of VDL and to decide the share exchange ratio, the FMCG major informed the Bombay Stock Exchange. The Board will also consider the valuation report of the joint valuer, S.B. Billimoria & Co, who have recommended a share exchange ratio of 1 share of Re 1 each of the company in exchange of every 10 shares of Rs 10 each of VDL and all other related and incidental matters, it said.

Demerger not okayed: Reliance

10th August 2005: In a surprise announcement, the boards of both Reliance Energy and Reliance Capital have said no decision has been taken about the demerger of four crucial businesses of Reliance Industries.

In a notice to the stock exchanges, Reliance Energy said in respect to the media reports on demerger of various businesses of Reliance Industries (RIL), the company has informed that the board of Reliance Energy has neither considered nor made any announcement relating to any scheme of demerger.

A similar announcement was made by Reliance Capital.

‘‘In respect of the media reports on the demerger of various businesses of Reliance Industries, the company has informed that the board of Reliance Capital has neither considered nor made any announcement relating to any scheme of demerger,’’ the announcement from RCL said.

Soon after the Reliance Industries AGM on last Wednesday, Anil Ambani had announced the demerger proposal. He also announced the final swap ratio of shares between the four special purpose vehicles to be created by RIL and four companies which have come under the Anil group.

The demerger was approved by the RIL board only subsequently. The RIL board approved the scheme of demerger of the telecommunications, power, fuel management and financial services businesses of RIL in the ratio of 1:1 shares for all Reliance shareholders.

Stock markets were surprised over the demerger swap ratio announced by Anil Ambani before the approval given by RIL board.