Tata Tea Share Surges

Mumbai: Shares of Tata Tea, India''s second-largest tea company, soared 14.8 per cent on April 25, on reports that cola major Coca-Cola is planning to buy US company Energy Brands International, commonly known as Glaceau, in which Tata Tea holds 30 per cent. Coca-Cola has reportedly valued the maker of the Vitamin water brand at about $3 billion, higher than the $2.25 billion valuation by the Tata group in August last year when it purchased 30 per cent for $677 million.Tata Tea likely to look at exiting Glaceau at a significant premium to its initial investment if Coca-Cola decides to acquire a majority shareholding in the company. Glaceau founder J Darius Bikoff, his family, associates, and distributors hold about 50 per cent in the company, while the remaining 20 per cent is held by venture capital funds. The initial pack inked between Glaceau and the Tata group gives for a further 10 per cent increase in stake by either Tata Tea or Tata Sons, though no specific duration has been assigned.