Tata Steel ups Corus buyout share to Rs 6,000cr
The board of Tata Steel has at its meeting held today approved an increased Tata Steel/Tata Steel Asia Holdings contribution in the acquisition of Corus Group, UK, i.e. from $6.7 billion to about $7.4 billion.
According to an official release issued by Tata Steel to the BSE today, this increase will essentially be covered by increasing the amount of the rights issue of 2% convertible preference shares from Rs 4,350 crore up to about Rs 6,000 crore. The rights issue will remain the same i.e. in the ratio of 1:5 at a price of Rs 300 per share.
The overall objective of the financing package would be to raise the required resources in the most cost-effective manner for Tata Steel/Tata Steel Asia Holdings and well within the ability of the Tata Steel Group to service the total investment, the release said.
Tata Steel, through its wholly-owned subsidiary, Tata Steel Asia Holdings has completed the acquisition of Corus Group of UK at a total cost of about $ 13 billion.
The board of Tata Steel has at its meeting held today approved an increased Tata Steel/Tata Steel Asia Holdings contribution in the acquisition of Corus Group, UK, i.e. from $6.7 billion to about $7.4 billion.
According to an official release issued by Tata Steel to the BSE today, this increase will essentially be covered by increasing the amount of the rights issue of 2% convertible preference shares from Rs 4,350 crore up to about Rs 6,000 crore. The rights issue will remain the same i.e. in the ratio of 1:5 at a price of Rs 300 per share.
The overall objective of the financing package would be to raise the required resources in the most cost-effective manner for Tata Steel/Tata Steel Asia Holdings and well within the ability of the Tata Steel Group to service the total investment, the release said.
Tata Steel, through its wholly-owned subsidiary, Tata Steel Asia Holdings has completed the acquisition of Corus Group of UK at a total cost of about $ 13 billion.