Date:08/09/2006 URL: http://www.thehindubusinessline.com/2006/09/08/stories/2006090803900300.htm

Tata Tea to raise more funds

Our Bureau

Mumbai, Sept. 7

The board of Tata Tea Ltd will be meeting on September 14 to consider a proposal to raise additional funds for the company's growth plans, the company said in a statement to the stock exchanges. Tata Tea probably requires the funds for its recently announced acquisition, said analysts.

Last month, Tata Tea had announced that it was buying 30 per cent stake in US health drinks company Energy Brands International for $677 million. Tata Tea would invest $192 million and Tata Sons $58 million, in the form of equity in Tata Tea GB (owners of Tetley) through which the transaction was being made, said Mr R.K. Krishna Kumar, Vice-Chairman of Tata Tea and Director of Tata Sons, in a conference call. The rest of the amount would be raised by way of debt by Tata Tea GB.