TGB at 52-week high post stake sale in JV

Tata Global Beverage (TGB) breached its 52-week high in the early trade on Friday as the company announced the sale of stake in its associate company.

TGB on Thursday announced a divestment of 31.85 per cent stake in its joint venture company, Estate Management Services (EMSPL) for a consideration of Rs. 120 crore. EMSPL is the holding company for Watawala Plantations which is one of the largest producers of tea and palm oil in Sri Lanka.

This move is part of the company's strategy to focus on branded business in key geographies. In August, TGB had announced sale of its business in Russia as part of a strategy to restructure operations in that country. The company, last month, completed the sale of two of its subsidiaries in Russia- Teatrade and Sunty for a consideration of about Rs. 41 crore.

Tata Global Beverages, a subsidiary of the Tata Group, is a multinational non-alcoholic beverages company. It is the world's leading manufacturer of tea and coffee.

At 10:08 hours on Friday, Tata Global Beverages was trading at a share price of Rs. 312.80, up Rs. 6.20, or 2.02 per cent on the NSE. The scrip opened at Rs. 306.60 and created a new 52-week high of Rs. 314.20 per share on NSE. The stock attracted a traded volume of 22,17,473 shares on NSE.