Tata Steel to buy up to 11.26% more in Tata Sponge Iron
Tata Steel made a voluntary offer to the shareholders of Tata Sponge Iron to acquire up to 17.24L shares or 11.26% stake in the associate co at Rs 375 per share.
By PTI | Updated:
NEW DELHI: Tata Steel today made a voluntary offer to the shareholders of Tata Sponge Iron to acquire up to 17.24 lakh shares or 11.26 per cent stake in the associate company at Rs 375 per share.
"The price offer is Rs 375 per equity share. The total funds required for implementation of the offer (assuming full accepatance)...is Rs 65.02 crore," Tata Steel said in a filing to the BSE.
The company, however, did not mention when the offer would be opened, but maintained that the details of the offer would be made through a public statement on or before June 22.
"The offer is not conditional upon any minimum level of acceptance...This is a voluntary offer," Tata Steel said, adding it has adequate financial resources to meet the offer obligations.
Tata Sponge Iron has manufacturing facility at Bilaipada in Odisha.
As on March 31, 2012, Tata Steel had 39.47 per cent stake in Tata Sponge Iron. Following the offer, Tata Steel's stake in the firm could go up to 51 per cent.
Total public shareholding in Tata Sponge Iron stood at 56.76 per cent.
Tata Sponge Iron was initially set up as a joint venture company between Tata Steel and the Industrial Promotion and Investment Corporation of Orissa Limited (IPICOL). However, in 1991, Tata Steel bought out IPICOL's stake and made it an associate company.
Tata Sponge Iron's total production capacity currently stands at 3.9 lakh tonnes per annum. It has 26 MW power generation capacity, which is sufficient to meet its energy need.
Shares of Tata Sponge Iron, which are listed both in NSE and BSE, today closed at Rs 306.55 apiece, down 0.11 per cent over theer previous day's closing.
"The price offer is Rs 375 per equity share. The total funds required for implementation of the offer (assuming full accepatance)...is Rs 65.02 crore," Tata Steel said in a filing to the BSE.
The company, however, did not mention when the offer would be opened, but maintained that the details of the offer would be made through a public statement on or before June 22.
"The offer is not conditional upon any minimum level of acceptance...This is a voluntary offer," Tata Steel said, adding it has adequate financial resources to meet the offer obligations.
Tata Sponge Iron has manufacturing facility at Bilaipada in Odisha.
As on March 31, 2012, Tata Steel had 39.47 per cent stake in Tata Sponge Iron. Following the offer, Tata Steel's stake in the firm could go up to 51 per cent.
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Total public shareholding in Tata Sponge Iron stood at 56.76 per cent.
Tata Sponge Iron was initially set up as a joint venture company between Tata Steel and the Industrial Promotion and Investment Corporation of Orissa Limited (IPICOL). However, in 1991, Tata Steel bought out IPICOL's stake and made it an associate company.
Tata Sponge Iron's total production capacity currently stands at 3.9 lakh tonnes per annum. It has 26 MW power generation capacity, which is sufficient to meet its energy need.
Shares of Tata Sponge Iron, which are listed both in NSE and BSE, today closed at Rs 306.55 apiece, down 0.11 per cent over theer previous day's closing.
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