Tata Steel will merge with itself six of its subsidiary firms, a press release mentioned on Friday.
A proposal on this regard was permitted by the Board of the corporate on Thursday, it mentioned.
“The Board of Directors of Tata Steel considered and approved schemes for the proposed amalgamation of six subsidiaries into and with Tata Steel,” the assertion issued by Tata Steel mentioned.
The subsidiaries are Tata Steel Long Products Limited by which Tata Steel holds 74.91 per cent fairness, The Tinplate Company of India Limited (74.96 per cent), Tata Metaliks Limited (60.03 per cent), The Indian Steel & Wire Products Limited (95.01 per cent fairness holding), Tata Steel Mining Limited and S & T Mining Company Limited (each wholly-owned subsidiaries).
“Tata Steel Board approves the amalgamation of strategic businesses into the company,” the assertion mentioned.
The Board additionally permitted the amalgamation of TRF Limited (34.11 per cent fairness), an affiliate firm of Tata Steel, into Tata Steel Limited.
Tata Steel additional mentioned the proposed amalgamation is aimed toward driving synergies, simplifying the group holding and administration construction, and consolidating and strategically rising downstream operations and engineering capabilities The Board has thought of the proposal primarily based on impartial equity and valuation opinions. It adopted the method laid down beneath the Companies Act, 2013 and Securities and Exchange Board of India Regulations.
The proposed amalgamation will improve administration effectivity, drive sharper strategic focus and enhance agility throughout companies primarily based on the robust parental help from the Tata Steel management.
“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 corporate mentioned.
The Boards of all of the amalgamating firms have additionally thought of the proposals following due course of and have unanimously permitted the merger.
The proposed amalgamation can also be a part of Tata Steel’s persevering with journey to simplify the group holding construction, the corporate mentioned.
According to the assertion, since 2019, Tata Steel has diminished 116 related entities (72 subsidiaries have ceased to exist, 20 associates and JVs have been eradicated and 24 firms are at the moment beneath liquidation).