In a move that will simplify the structure of the Tata Steel and achieve better facility utilisation the board of Tata Steel Ltd. has approved the merger of seven of its subsidiaries with itself. The Tata Steel merger is aimed at better operational integration, as well as a simplified structure for greater efficiency, faster execution and rationalisation of logistics cost, the filing stated.
It has approved the amalgamation of the following companies with itself:
- Tata Metaliks
- Tata Steel Long Products
- Tinplate Company of India
- TRF
- The Indian Steel & Wire Products
- Tata Steel Mining
- S&T Mining Company
Each scheme of merger is subject to the approval of shareholders, the Securities and Exchange Board of India, the stock exchanges and other statutory bodies.
Tata Steel Share Swap Ratios –
- Tata Steel Long Products: 67 shares of Tata Steel for every 10 shares held
- Tin Plate Company: 33 shares of Tata Steel for every 10 shares held
- Tata Metaliks: 79 shares of Tata Steel for every 10 shares held
- TRF: 17 shares of Tata Steel for every 10 shares held
- Indian Steel & Wire Products: Rs 426 for every share held
- Tata Steel Mining: No share issuance
- S&T Mining Company: No share issuance
Tata Group said that each of these companies was reviewed and recommended to the Board by the Committee of Independent Directors and the Audit Committee of the Company.
(Additional Input from PTI)
