New Delhi: The Tata Steel board has approved schemes to merge seven of Tata group metal companies, including six subsidiaries and one associate, with it. The Tata group stated it in a regulatory filing on Friday.
The company officials said that the exercise was aimed at consolidating the metals and mining business and simplify the holding structure.
These Tata group metal companies are Tata Steel Long Products Ltd (TSLP), Tinplate Company of India Ltd (TCIL), Tata Metaliks Ltd (TML), TRF Ltd, The Indian Steel & Wire Products Limited (ISWP), Tata Steel Mining Limited (TSML) and S & T Mining Company Ltd (S&T Mining).
The mergers/amalgamations also seek to share the best practices among the group companies, cross-functional learnings, utilizing each other’s facilities and collaborating for marketing and distribution network among others.
“Each Scheme was reviewed and recommended to the Board by the Committee of Independent Directors and the Audit Committee of the Company,” Tata Steel said in a filing to stock exchange BSE.
It also said that each scheme is subject to the receipt of approval from the requisite majority of the shareholders of the respective transferor companies and transferee company, competent authority, market regulator SEBI, stock exchanges and other authorities as may be necessary as per applicable laws.
“Each Scheme along with the related documents/certificates will be submitted to the Stock Exchanges, as per the provisions of Regulation 37 of the Listing Regulations read with the SEBI Circulars, wherever required,” Tata Steel said.
There were changes in leadership of group companies as well.
In an exchange filing,Tata Metalics, said that Sandeep Kumar, managing director of the company, had expressed his intention to step down from the services of the company from the close of business hours of October 31, 2022, to take up a similar opportunity within the Tata Steel Group. And Alok Krishna would take charge as the managing director effective November 1, 2022.
Each scheme of amalgamation would now move into a defined regulatory approval process, Tata Steel said.
