Board gives nod to amalgamation of Tata Metaliks with Tata Steel
Mail News Service
Mumbai/Jamshedpur, Sep 23: The Board of Directors of Tata Metaliks Limited at its meeting held on September 22 considered and unanimously decided to withdraw the existing scheme of amalgamation of Tata Metaliks Limited into and with Tata Steel Long Products Limited, approved earlier at its meeting dated November 13, 2020. The decision to withdraw the same was taken owing to significant changes in underlying business conditions of both the companies resulting in dilution of the inherent benefits which were initially envisaged.
Further, the Board considered and unanimously approved a scheme of amalgamation of the Company into and with Tata Steel Limited. The Board has considered the amalgamation proposal based on independent fairness and valuation opinions, and followed the process laid down under the Companies Act, 2013 and Securities and Exchange Board of India regulations. Based on the reports of the independent valuers, the Board has approved the following swap ratio for the proposed amalgamation: for every 10 shares of Tata Metaliks Limited, 79 shares of Tata Steel Limited.
The proposed amalgamation seeks to enable the business of ductile iron pipes to scale up its operations by leveraging on infrastructure, R&D, digital and project execution capabilities of Tata Steel. The business will also benefit from transfer of best practices, human capital, and technical knowhow from Tata Steel.
After having completed more than 5 years in leading Tata Metaliks successfully,
Sandeep Kumar will step down as Managing Director and Key Managerial Personnel of the Company with effect from October 31, 2022 and take up another assignment within the Tata Steel system.
Consequently, the Board of Directors, upon recommendation of the Nomination and Remuneration Committee, has approved the appointment of Alok Krishna as an Additional Director of the Company, on and from November 01, 2022. Krishna is currently the Managing Director of TRF Ltd and will assume the position of Managing Director & be a Key Managerial Personnel of the Company from November 01, 2022.