Shareholders Of Tata SSL To Gain After Tisco Merger

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Mumbai, April 2: : Tata SSL shareholders, who did not participate in the open offer by Tata Steel, are in for a windfall. They will now be given one share of Tata Steel for every two shares held in Tata SSL on its amalgamation with Tata Steel.

A Tata SSL shareholder said the shareholders will also be eligible for a dividend this year. The swap ratio for the merger is subject to approval by the Mumbai High Court. Both the companies have applied to the Mumbai High Court for approval of the amalgamation.

A company spokesperson confirmed the development.

Tata Steel and its investment arm, Kalimati Investment Company Ltd, had made the third and final open offer to acquire the remaining shareholding in Tata SSL in January 2002.

In October 2001, the two companies had made an open offer to the public shareholders of Tata SSL to acquire the entire shareholding at Rs 27 for every fully paid-up equity share and Rs 2 for every partly paid-up equity share.

Pursuant to the offer, they acquired 29,51,058 fully paid equity shares and 36,095 partly paid-up equity shares of TSSL, resulting in an increase in shareholding from 83.60 per cent to 92.92 per cent.

Since the shareholding of Tata Steel and Kalimati Investment exceeded 90 per cent of the voting capital of Tata SSL, a third and final offer was made. The final offer opened on January 17, 2002, and closed on February 16, 2002.

Tata Steel’s holding in Tata SSL reached 95 per cent subsequent to the third and final offer. The exit option at the same offer price was kept open for the balance shareholders till July 16, 2002.

The board of Tata SSL on October 30, 2002, considered the amalgamation of the company with Tata Steel. At a court-convened meeting held on December 18, 2002, the shareholders of Tata Steel approved the amalgamation of Tata SSL with the company with effect from April 1, 2002.