New Delhi, Sep 23 (PTI) Tata Steel will merge with itself six of its subsidiary companies, a statement said on Friday.
A proposal in this regard was approved by the Board of the company on Thursday, it said.
"The Board of Directors of Tata Steel considered and approved schemes for the proposed amalgamation of six subsidiaries into and with Tata Steel," the statement issued by Tata Steel said.
The subsidiaries are Tata Steel Long Products Limited in which Tata Steel holds 74.91 per cent equity, 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 equity holding), Tata Steel Mining Limited and S & T Mining Company Limited (both wholly-owned subsidiaries).
"Tata Steel Board approves the amalgamation of strategic businesses into the company," the statement said.
The Board also approved the amalgamation of TRF Limited (34.11 per cent equity), an associate company of Tata Steel, into Tata Steel Limited.
Tata Steel further said the proposed amalgamation is aimed at driving synergies, simplifying the group holding and management structure, and consolidating and strategically growing downstream operations and engineering capabilities
The Board has considered the proposal based on independent fairness and valuation opinions. It followed the process laid down under the Companies Act, 2013 and Securities and Exchange Board of India Regulations.
The proposed amalgamation will enhance management efficiency, drive sharper strategic focus and improve agility across businesses based on the strong parental support from the Tata Steel leadership.
"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 company said.
The Boards of all the amalgamating companies have also considered the proposals following due process and have unanimously approved the merger.
The proposed amalgamation is also part of Tata Steel's continuing journey to simplify the group holding structure, the company said.
According to the statement, since 2019, Tata Steel has reduced 116 associated entities (72 subsidiaries have ceased to exist, 20 associates and JVs have been eliminated and 24 companies are currently under liquidation). PTI ABI AQS