The board of Mount Everest Mineral Water will issue and allot to Tata Tea 50.99 lakh shares of the company at a price of Rs 140 per share on preferential allotment basis to Tata Tea. The announcement was made by the company after trading hours on Friday, 1 June 2007.
The board also approved Tata Tea’s proposal to acquire 31.10 lakh shares of Mount Everest Mineral Water from Foresight Holdings and Vinod Sethi, promoters of MEMW, and Salim Govani, MEMW Managing Director, at Rs 140 per share.
MEMW announced on 19 March 2007, that it is entering into a distributorship agreement for marketing an energy drink under the brand name ‘Power Horse’ in India.
The net profit declined 38.2% to Rs 0.34 crore in Q3 December 2006 as against Rs 0.55 crore in Q3 December 2005. Sales soared 46.9% to Rs 6.20 crore in Q3 December 2006 (Rs 4.22 crore).