Tata Steel has proposed a scheme of amalgamation between itself, Tata Metaliks and Tata Metaliks DI Pipes (formerly Tata Metaliks Kubota Pipes).
In a statement, Tata Steel said a court-convened meeting of equity shareholders of the company will be held on May 16 'for the purpose of considering and approving the proposed scheme of amalgamation between Tata Steel and Tata Metaliks and Tata Metaliks DI Pipes and their respective shareholders and creditors'.
As per the proposed scheme, Tata Metaliks shareholders will receive four equity shares of Tata Steel for every 29 equity shares held, the company statement said.
As per the scheme, the amalgamation will result 'in forward and backward integration of the operations and complete the entire value chain from iron ore mining to downstream value-added products. The amalgamation will provide opportunity for reduction of operational costs. The business of the transferor companies can be carried on more economically'.