Jamshedpur, May 18: Tata Steel Limited (the Company) on Wednesday announced that its Committee of Directors (constituted and duly authorized by the Board of Directors) approved the proposal of the company to file appropriate application before the High Court of Bombay seeking recall of the order dated August 21, 2015 sanctioning the Scheme of Amalgamation between the Tata Metaliks Limited and Tata Metaliks Dl Pipes Limited with the Company (Scheme).
The scheme was earlier recommended by the Committee of Directors in April 2013 and approved by the members of the company at the court convened meeting held in May 2014. As per the terms of the scheme, the swap ratio for public shareholders was 4 equity shares of Rs. 10 each of Tata Steel Limited for every 29 equity shares of Rs. 107 each held in Tata Metaliks Limited.
The scheme is currently not effective since the petition filed by Tata Metaliks Limited with the High Court of Calcutta for approval of the scheme is pending for disposal. Accordingly, Tata Metaliks Limited has been advised to consider withdrawing the Scheme with a leave to re-file a fresh scheme for merger of Tata Metaliks Dl Pipes Limited with Tata Metaliks Limited.
Koushik Chatterjee, Group Executive Director (Finance and Corporate), Tata Steel, said, “The decision is based on careful consideration of various factors including, inordinate delay in obtaining requisite regulatory and statutory approvals along with significant dilution in the intended synergies that were envisaged in April 2013.
Tata Steel continues to strategically support Tata Metaliks in its journey towards making it a profitable and value creating company for the future. With today’s decision, Tata Metaliks will continue to operate as a subsidiary company of Tata Steel Limited.”