Tata Steel Limited (TSL) has announced that its Committee of Directors and the Board of Directors of Tata Metaliks Limited (TML) and Tata Metaliks Kubota Pipes Limited (TMKPL), a 100% subsidiary of TML, have approved the proposal of merger of TML and TMKPL with TSL through a Scheme of Amalgamation to be sanctioned through a court approval process.

TSL Scheme was filed with the Stock Exchanges where the shares of TSL and TML are listed, for their comments to the scheme and shall be submitted for sanction to the High Courts of Judicature of Bombay and Calcutta.

Sanctioning of the Scheme will also be subject to the approvals of the shareholders and creditors, according to a TSL release.

The scheme, inter alia, envisages synergies through aligning the activities of a single value chain within one legal entity. Based on the fairness opinion of ICICI Securities on the valuation of independent Chartered Accountants- M/s SR Batliboi & Co and LLP Haribhakti & Co., ., 4 (four) equity shares of Rs. 10.00 each of TSL shall be issued for every 29 (Twenty nine) equity shares of Rs. 10.00 each held by the public shareholders of TML upon necessary approvals of the scheme. TSL along with a subsidiary holds 50.09 per cent of the equity share capital of TML.

Established in 1990, the city-based TML has recently commissioned sinter plant at its Kharagpur site to produce about 0.4 mtpa of sinter at a capex of Rs 100 crore. Its products are sold to foundries all over India.

TMKPL is a 100% unlisted subsidiary of Tata Metaliks Limited and was established in 2007 as a joint venture between TML, Kubota (Japan) and Metal One (Japan) for producing ductile iron pipes used for water distribution mainly for the infrastructure sector.

More In: Industry | Business