Tata Steel board approves merger of six subsidiary companies

To bring about greater synergies, higher efficiency and reduce costs, Tata Steel on Friday said its board has approved the merger of six of its subsidiaries into itself. The subsidiaries are Tata Steel Long Products (TSPL), The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, Tata Steel Mining, and S&T Mining Company. The amalgamation will be through a share swap, Tata Steel said.

Share swap ratios under the merger scheme would be 17:10 for TRF (17 shares of Tata Steel for every 10 shares of TRF), 67:10 for TSPL (67 shares of Tata Steel for every 10 shares of TSPL), 33:10 for Tinplate (33 shares of Tata Steel for every 10 shares of Tinplate), 79:10 for Tata Metaliks (79 shares of Tata Steel for every 10 shares of Tata Metaliks).

Tata Steel is a majority holder in all these subsidiaries, and the proposed amalgamation will enhance management efficiency, drive sharper strategic focus and improve agility across businesses based on the strong parental support from Tata Steel leadership, the company said in a stock exchange filing. The resources of the merged entity have been pooled to unlock the opportunity for creating shareholders’ value, it added.

The company also said that in line with Tata Steel’s long-term strategy, the consolidation of downstream operations will enable growth in value-added segments by leveraging Tata Steel’s nationwide marketing and sales network.  FE