ANI | | Posted by Nisha Anand
Tata Steel‘s board has approved the amalgamation of seven subsidiaries with itself, the steelmaker said in a regulatory filing to the stock exchanges on Friday.
The nod was received on Thursday at a meeting of its Board members.
These seven companies are Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, TRF, The Indian Steel & Wire Products, Tata Steel Mining, and S and T Mining Company, the same filing said.
Each scheme was reviewed and recommended to the Board by the Committee of Independent Directors and the audit committee of the company, it added.
“Each Scheme is subject to the receipt of approval from the (a) requisite majority of the shareholders of the respective Transferor Companies and Transferee Company; (b) Competent Authority (as defined in each of the Schemes), (c) SEBI (d) The National Stock Exchange of India Limited and the BSE Limited (hereinafter collectively referred to as “Stock Exchanges”); and (e) such other approvals, permissions and sanctions of regulatory and other statutory or governmental authorities / quasi-judicial authorities, as may be necessary as per applicable laws.”
Subsidiaries shares slump on merger plan
The share price of Tata Steel rallied while subsidiaries slumped by upto 9 per cent on Friday after the company’s board approved the amalgamation of seven group companies. On the BSE, Tata Steel share was trading at 1.30 per cent higher at ₹105. The scrip surged to a high of ₹107.90 in the intra-day.
Out of the seven Tata Group companies that would get merged with Tata Steel, four are listed. All these four companies were trading with heavy losses.