The Hindu Business Line : Tata Steel will pay $7.4 b as its share for Corus buy

Mumbai, July 30 Tata Steel Ltd has decided to raise its contribution (including that of Tata Steel Asia Ltd) from $6.7 billion to $7.4 billion for the acquisition of Corus Group Ltd, UK.

After its board meeting here today, a company release said as announced earlier, Tata Steel, through its wholly owned subsidiary, Tata Steel Asia Holdings Pte Ltd, has completed the acquisition of Corus Group Ltd of UK at a total cost of about $13 billion. This increase will essentially be covered by increasing the amount of the rights issue of 2 per cent convertible preference shares (announced earlier) from Rs 4,350 crore up to about Rs 6,000 crore; the other detailed terms of this issue will be finalised closer to the time of the issue. The rights issue of equity shares will remain the same i.e. in the ratio of 1:5 at a price of Rs 300 per share.

Apart from the funds raised through equity capital in the last 12 months and the proposed rights issue of equity shares and convertible preference shares and long-term debt already raised by the company, the balance of the funds required would be raised through appropriately structured issues in the foreign markets.

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