Tata Tea-EBRD to acquire 51 % stake in Grand

Kolkata Tata Tea (through one of its overseas subsidiaries) together with the European Bank for Reconstruction and Development (EBRD) plans to acquire 51 per cent stake in Grand, a branding, packing and distribution company in Russia.

Tata Tea would hold 33.2 per cent stake while EBRD would hold 17.8 per cent stake in Grand, the company informed the BSE on Thursday. The balance 49 per cent would remain with the founding promoters led by Dr Alexander E. Borisov.

The acquisition would be subject to the fulfilment of various conditions, including regulatory approvals, and would be completed during the first half of 2009.

Tata Tea’s investment in the company would finance the modernisation of Grand’s production facilities to increase the quantity and quality of their output and would also open the way for new market opportunities.