Tata Steel, on Friday, proposed to hike its stake in group firms Tata Sponge Iron and The Tinplate Company by up to 11.26 per cent and 14 per cent, respectively, for a total consideration of Rs.153 crore.
Tata Steel announced a voluntary offer to buy up to 17.24 lakh shares in Tata Sponge Iron, an associate firm, at Rs.375 a share, entailing a total outgo of Rs.65.02 crore.
In a separate exchange filing, the steel major said it would acquire up to 14.65 lakh shares in The Tinplate Company for Rs.60 a share for a total of about Rs.87.92 crore.
Following the offer, Tata Steel's stake in Tata Sponge would go up to 51 per cent and in Tinplate Company up to 73.44 per cent, if subscribed fully. Tata Sponge Iron has manufacturing facility at Bilaipada in Odisha.
Tata Steel, however, did not mention when the offers would be opened, but maintained that the details of the offer would be made through a public statement on or before June 22. The offers are not conditional upon any minimum level of acceptance as these are voluntary offers, Tata Steel said.
Shares of Tata Sponge Iron on Friday closed at Rs.306.55 apiece on the BSE, down 0.11 per cent over the previous day's closing. The Tinplate Company offer price is at a premium of little over 28 per cent over Friday's close of its shares on the BSE of Rs.46.80 apiece.
