Tata Steel Mega Merger
Tata Steel Ltd on Friday announced the merger of seven of its subsidiaries with itself
That includes four listed and three unlisted companies, to consolidate its operations and save costs.
The board of Tata Steel approved the amalgamation of Tata Steel Long Products Ltd (TSL), Tata Metaliks Ltd, TRF Ltd, etc.
Analysts said the amalgamation simplifies the corporate structure and may bring synergy benefits and save costs.
Tata Steel rose as much as 4.1% on the stock exchanges on Friday but pared much of the gains as the benchmark Sensex index plunged over 1.73%
However, it still managed to close with gains of 0.55%.
Tata Steel will give 79 shares for every 10 shares held by Tata Metaliks shareholders and 33 shares for every 10 shares held by Tinplate shareowners.
Tata Steel will pay ₹426 per share to the shareholders of Indian Steel & Wire Products Ltd
Tata Steel Mining Ltd and S&T Mining Co. Ltd are wholly owned units of Tata Steel.