The board of Tata Steel approved the amalgamation of seven of its subsidiaries –
, , The , , Indian Steel & Wire Products, Tata Steel Mining and S&T Mining into and with its parent company .
The decision was taken at a board meeting of the company held yesterday, an exchange filing said.
The company has withdrawn the earlier merger scheme of Tata Metaliks and Tata Steel Long Products (TSPL). Under the new amalgamation scheme, Tata Steel will give 69 shares for every 10 shares of TSPL. For Tata Metaliks, Tata Steel will give 79 shares for every 10 shares of Tata Metaliks. Tata Steel will give 33 shares for every 10 shares of Tinplate and 17 for every 10 shares of TRF.
Explaining the rationale behind the merger scheme, Tata Steel said the resources of the merged entities can be pooled to unlock the opportunity for creating shareholder value.
Besides citing other synergies, it also said the mergers will result in utilisation of each other’s facilities in a more efficient manner. Marketing and distribution network of both entities can be collaborated, it said.