Jamshedpur, Sept 23: The Board of Directors of Tata Steel Limited at a meeting, considered and approved schemes for the proposed amalgamation of six subsidiaries into and with Tata Steel.
The subsidiaries are all majority owned by Tata Steel and include Tata Steel Long Products Limited (74.91% equity holding), The Tinplate Company of India Limited (74.96% equity holding), Tata Metaliks Limited (60.03% equity holding), The Indian Steel & Wire Products Limited (95.01% equity holding), Tata Steel Mining Limited and S & T Mining Company Limited (both wholly owned subsidiaries).
The board also approved the amalgamation of TRF Limited (34.11% equity holding) into Tata Steel Limited.
The board has considered the proposal based on independent fairness and valuation opinions and followed the process laid down under the Companies Act, 2013 and Securities and Exchange Board of India Regulations.
The proposed amalgamations will enhance management efficiency, drive sharper strategic focus and improve agility across businesses based on the strong parental support from Tata Steel leadership.
In line with Tata Steel’s long-term strategy, the consolidation of the downstream operations will enable growth in value-added segments by leveraging Tata Steel’s nationwide marketing and sales network.
The amalgamations will also drive synergies through raw material security, centralized procurement, optimization of inventories, reduced logistics costs, and better facility utilization.
On completion, there will be further opportunities towards reduction of overhead and corporate costs. Each of the proposed amalgamations will be value-accretive for shareholders.
The Boards of all the amalgamating companies have also considered the proposals following due process and have unanimously approved the amalgamations.