Tata Steel board approves merger of six subsidiaries

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A proposal in this regard was approved by the company’s board on Thursday, he said.



“The Board of Directors of Tata Steel reviewed and approved the proposed merger plans of six subsidiaries into and with Tata Steel,” said the statement issued by Tata Steel.

The subsidiaries are Tata Steel Long Products Limited in which Tata Steel holds 74.91% of the capital, The Tinplate Company of India Limited (74.96 percent), Tata Metaliks Limited (60.03%), The Indian Steel & Wire Products Limited (95.01% ownership), Tata Steel Mining Limited and S & T Mining Company Limited (both wholly owned subsidiaries).

Tata Steel Panel approves the merger of strategic businesses into the company,” the statement read.

The board also approved the merger of TRF limited (34.11 per cent stake), an associate company of Tata Steel, in Tata Steel Limited.

Tata Steel further stated that the proposed merger aims to generate synergies, simplify the group’s ownership and management structure, and consolidate and strategically expand downstream operations and engineering capabilities.

The board reviewed the proposal based on independent fairness and valuation opinions. It followed the process provided by the Companies Act 2013 and the regulations of the Securities and Exchange Board of India.

The proposed merger will improve management efficiency, lead to sharper strategic direction and improve agility across businesses based on strong parental support from Tata Steel’s management.

“Once completed, there will be further opportunities to reduce corporate overhead and costs. Each of the proposed mergers will create value for shareholders,” the company said.

The boards of all merging companies also considered the proposals in accordance with due process and unanimously approved the merger.

The proposed merger is also part of Tata Steel’s ongoing journey to simplify the group’s holding structure, the company said.

According to the statement, since 2019, Tata Steel has reduced 116 associated entities (72 subsidiaries have ceased to exist, 20 associated companies and JVs have been eliminated and 24 companies are currently in liquidation).

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