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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (10248)	12/22/1999 10:52:00 PM
From: Mohan Marette	Respond to of 12475

Tata Tea planning $100-150m GDR for Tetley deal TATA Tea tatatea.com tata.com TATA Tetley tata.com 22-12-1999 11:49:34 (Probity) Tata Tea is planning to raise around US$100-150mn through an issue of global depository receipts (GDRs) to part-fund its US$430mn plus (œ270mn) acquisition of Tetley's brands. The Tata Tea board which met in Bombay yesterday discussed ways to fund the acquisition of the UK company's brands. A special purpose vehicle (SPV) to be floated in the UK, is under consideration, to fund the acquisition into which around US$100-150m in equity will be infused. The Tatas are also planning to rope in other partners to contribute equity into this SPV. Around US$250-300mn will be raised through either loan or securitization of sales proceeds. Tata Tea is likely to award the mandate to CS First Boston for raising the GDR funds, the debt will be managed by Tata Tea's sole advisor Rabo Bank of the Netherlands in association with Hongkong & Shanghai Banking Corporation (HSBC). Post-acquisition the SPV would be converted into a division of Tata Tea. The deal is expected to be completely tied up by end-January 2000 giving Tata Tea almost immediate access to North America, Europe and Australia. Tetley is known for tea bags with a wide range of exotic flavors such as Lemon Chamomile, Orange Peach, Peppermint Summer and black drawstring teas such as English Breakfast and British blend decaffeinated.