Sunday, October 2, 2022

Board of Directors approves proposal for amalgamation of Tinplate Company of India with Tata Steel

Mail News Service

Mumbai/Jamshedpur, Sep 23: The Board of Directors of The Tinplate Company of India Limited at its meeting held on Sep 22 considered and unanimously approved the scheme for amalgamation of the Company 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 The Tinplate Company of India Limited, 33 shares of Tata Steel Limited.

The company benefits significantly from the Tata Steel parentage as it already sources 100% of its required high quality input material from Tata Steel, as the most cost efficient, and stable supplier.  The company has also announced plans to increase its capacity by 3,00,000 MT as part of a critical expansion to maintain and grow market share. The proposed amalgamation will accelerate the expansion project through seamless availability of capital and superior project execution capabilities. It will also ensure seamless availability of input material for current and future capacity requirements. Our business will benefit from transfer of best practices in operations and the strong Research and Development capabilities of Tata Steel, including those relating to its packaging steel capabilities in Europe. The consolidation of the downstream operations as well as the combination with Tata Steel’s nationwide marketing and sales network will ensure improved service levels and reach for our customers.

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