Tata Global Bev to buy 4% of Mt Everest

At the end of December 2011,Tata Global Beverages held 13,910,653 shares (40.92 per cent) in MEMW.

The proposed purchase of shares will be made on or before March 31,2012,at a price of Rs 198 per share.

Shares of mineral water producer MEMW closed at Rs 105.90 apiece,up 2.57 per cent over their previous close on the BSE.

The purchase of shares were subject matter of a put-option agreement entered into with the promoters at the time of the acquisition of MEMW.

“The board has approved amendments to the said agreement to reduce the number of shares which are the subject matter of the said agreement,” the filing said.

The board has also approved amendments to provide that the promoters would be entitled to exercise their option commencing from the financial year 2012-13.

Amendments also reduce the interest component in the calculation of the put option price from 10 per cent per annum to approximately 7 per cent,the filing added.

Tata Global Beverages is a global beverage business and the world’s second largest tea company.

Shares of Tata Global Beverages closed at Rs 109.85 apiece,up 1.15 per cent over their previous close on the BSE.