Tata Steel merges subsidiaries for better efficiency; here’s the swap ratio

Tata Steel merges subsidiaries for better efficiency; here’s the swap ratio

The subsidiaries merged into Tata Steel include Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, The Indian Steel & Wire Products, Tata Steel Mining, S & T Mining Company and TRF.

The board of Tata Steel has approved the amalgamation of strategic businesses into the company as part of its efforts to drive synergies, simplify group holding and management structure, consolidate and strategically grow downstream operations and engineering capabilities. 

As per a statement issued by the steel major, the subsidiaries are all majority owned by Tata Steel and include Tata Steel Long Products (74.91 per cent equity holding), The Tinplate Company of India (74.96 per cent), Tata Metaliks (60.03 per cent), The Indian Steel & Wire Products (95.01 per cent), Tata Steel Mining Limited and S & T Mining Company Limited (both wholly owned subsidiaries). 

The board of Tata Steel also approved the amalgamation of TRF (34.11 per cent) into Tata Steel. 

Further, based on the reports of the independent valuers, the board approved swap ratios for the proposed amalgamations as below: 

For every 10 shares of Tata Steel Long Products, 67 shares of Tata Steel

For every 10 shares of The Tinplate Company of India, 33 shares of Tata Steel 

For every 10 shares of Tata Metaliks, 79 shares of Tata Steel 

For every 10 shares of TRF, 17 shares of Tata Steel 

Interestingly, shares of the listed subsidiaries registered a strong surge in the last one month even as the benchmark Sensex rose a marginal 0.7 per cent. In the last one month, shares of Tata Steel Long Products rose from Rs 605 to Rs 749 while those of The Tinplate Company of India moved up from Rs 295 to Rs 338. Shares of Tata Metaliks rose from Rs 715 to Rs 801

From BusinessToday.in