Tatas to sell stake in Energy Brands for $1.2 billion

By IANS

New Delhi : Tata Sons, India's largest private sector group, Friday said it was selling the 30 percent stake it held in the US-based Energy Brands Inc. for $1.2 billion and thereby make a neat profit of $523 million.


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The stake, which was acquired for $677 million, is being sold to the Coca-Cola Company, which will become a 100-percent owner of Energy Brands – better known for its brand Glaceau.

"This consideration reflects an underlying enterprise value of $4.2 billion of Energy Brands," the Tatas said in a statement. Based on the cost of purchase, the enterprise value of the company was $2.2 billion.

Tata Tea had a 25-percent stake in Energy Brands through its Britain-based arm Tata Tea (GB) Investments, while its parent company Tata Sons Ltd had a five percent stake.

The Tata group has 93 companies in its fold with interests across seven business sectors and revenues of $22 billion.

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