UK court okays Corus' share capital cut
The court's approval is the last regulatory and legal condition for completing the $12 billion deal.
By PTI |
LONDON: Indian conglomerate Tata Group on Friday moved closer to completing its Corus acquisition with a UK court approving the reduction in the Anglo-Dutch firm's equity capital, a move that helps in starting a business afresh.
The High Court of Justice in England and Wales granted an order at a hearing held earlier today confirming the reduction of the company's share capital, Corus said in a statement on Friday.
Capital reduction proposals in case of merger and acquisitions are gaining ground and this reflects a firm's intention to start the business on a fresh and clean slate.
Today's court approval was the last regulatory and legal condition for completing the deal. The $12 billion deal is expected to be effective from next week on April 2, after which Corus would become a subsidiary of Tata Steel.
The reduction of capital has been effected under the terms of the scheme of arrangement agreed with Tata Steel, Corus said.
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Trading in Corus shares was suspended yesterday after the acquisition was approved by the company's shareholders at an EGM on March 7 and by the UK court on March 27.Corus shares closed at 607 pence a share before trading was suspended, as against the agreed acquisition price of 608 pence a share.
Tata Steel had outbid Brazil's CSN in a nine-round auction with its winning bid of 608 pence for acquisition of Corus. The Indian giant has already amassed about 22 per cent stake in Corus through open market transactions.
Tata Steel had said on February 7 it plans to dispatch the consideration for Corus takeover as soon as possible on or after April 2, the effective date for the deal.
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