Tata Steel merges its subsidiary with itself

KOLKATA: Tata Steel has decided to merge its wholly owned subsidiary, Hooghly Metcoke Ltd, with itself. The boards of Tata Steel and Hooghly Metcoke approved the scheme of amalgmation at their meetings held on Wednesday.

Hooghly Metcoke will merge with Tata Steel with effect from April 1, 2009 subject to necessary approvals. Expalining the rationale behind the merger plan, Tata Steel said while it is engaged in the manufacture of steel and steel related products, coke is a primary fuel for conversion of iron ore to steel inside the blast furnace.

At present, Tata Steel uses coke manufactured by Hooghly Metcoke.The merger of the two companies will help to reduce the administrative costs, streamline control, and eliminate procedural bottlenecks.

The scheme is subject to and conditional upon requisite approvals and sanctions being received there of including approval of the shareholders of both the companies and sanctions of the Bombay and Calcutta High Courts under Sections 391 and 394 of the Companies Act, 1956.

Since, Hooghly Metcoke is a 100% subsidiary of Tata Steel, no new shares will be issued and all the shares held by Tata Steel in Hooghly Metcoke will be cancelled. The total issued, subscribed and paid up share capital of HMPCL as on March 31, 2009 is Rs 547.7 crore.