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Home > Business > PTI > Report

Tata-Corus deal to be effective by April

February 08, 2007 18:50 IST

After winning a multi-billion dollar auction for Anglo-Dutch steelmaker Corus late last month, domestic steel giant Tata Steel expects its scheme of arrangement regarding the takeover to be effective by end of March or the first week of April.

Tata Steel said in a regulatory filing on the London Stock Exchange on Wednesday that it expects Corus to post a revised scheme document to its shareholders shortly, following the announcement of its revised offer of 608 pence per share on January 31.

"Tata Steel now anticipates that the effective date of the scheme of arrangement will be around the end of March or the first week of April 2007," it added.

The Indian giant intends to despatch consideration pursuant to the scheme as soon as practicable following the effective date and if practicable, on the effective date, the company said.

Earlier, within a day of its victory in the auction to acquire Corus Group Plc, Tatas had acquired 21.1 per cent stake in the Anglo-Dutch steelmaker for about $2.4 billion at 608 pence a share.

The shares were purchased on January 31, by its wholly-owned subsidiary Tata Steel UK Ltd, the acquisition vehicle for the Corus deal.

Soon after winning the nine-round auction for Corus, the company had said it intended to acquire shares from the market at a price of up to 608 pence in cash. It had asked all Corus shareholders wishing to sell their shares to Tata Steel, to contact its corporate brokers at ABN Amro Hoare Govett and Deutsche Bank.

The Tata-Corus saga

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