Tata Steel to consider scheme for merger of Indian Steel & Wire Products, calls shareholders meeting on Jan 25
New Delhi, Dec 22 (IANS) A meeting of the equity shareholders of Tata Steel Limited is scheduled to be held on January 25 to consider and approve the ‘Scheme of Amalgamation’ amongst Tata Steel Limited and The Indian Steel and Wire Products Limited and their respective shareholders.
Tata Steel Limited, the transferee company, is one of the leading global steel companies with over 100 years of experience in the steel sector and is a pioneer of steel manufacturing in India.
Indian Steel & Wire Products Limited, the transferor company, is engaged inter alia in the business of manufacture of wire rods, TMT rebars, wires and wire products as an external processing agent of the transferee company and manufacturing and direct marketing of welding products, nails, rolls and castings.
The amalgamation will consolidate the business of transferor company and the transferee company which will result in focused growth, operational efficiencies, and enhance business synergies.
In addition, the resulting corporate holding structure will bring enhanced agility to business ecosystem of the merged entity.
The amalgamation will ensure creation of a combined entity, hosting value-added long products under the transferee company, leading to ‘One-Tata Steel’ in front of customers which will improve shareholder value of the merged entity.
Further, such restructuring will lead to simplification of group structure by eliminating multiple companies in similar business.
The transferor company and the transferee company believe that the financial, managerial and technical resources, personnel, capabilities, skills, expertise and technologies of the transferor company and the transferee company pooled in the merged entity, will lead to optimum use of infrastructure, cost reduction and efficiencies, productivity gains and logistic advantages and reduction of administrative and operational costs and thereby maximising shareholder value of the merged entity.
–IANS
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