Tata Metaliks and Tata Metaliks Kubota Pipes (TMKPL), a 100% subsidiary of TML, are, subject to court approvals, to merge with Tata Steel (TSL).
Late on Wednesday, Tata Steel announced that its committee of directors and the board of directors of TML and TMKPL had approved the proposal of merger of TML and TMKPL with TSL through a scheme of amalgamation to be sanctioned through a court approval process.
The valuation reports prepared by independent chartered accountants? firms of S R Batliboi & Co and LLP Haribhakti & Co and a fairness opinion prepared by ICICI Securities were placed before the audit committees of TSL and TML, a release said.
Following the valuation reports and the fairness opinion, the audit committees of TSL and TML have furnished their reports, recommending the scheme, formulated under sections 391-394 of the Companies Act, 1956.
Based on the fairness opinion of ICICI Securities on the valuation of independent chartered accountants SR Batliboi & Co and LLP Haribhakti & Co, four equity shares of R10 each of TSL shall be issued for every 29 equity shares of R10 each held by public shareholders of TML upon approval of the scheme by the courts.
Tata Steel along with a subsidiary holds 50.09% of the equity share capital of TML.?