Tata Steel Final Offer For Ssl Opens Today

Tata Steel has decided to make the third and final open offer to acquire the balance stake in Tata SSL. Tata Steel and Kalimati Investment Company-- a wholly-owned subsidiary of Tata Steel, currently own 92.9 per cent stake in Tata SLL.

The cash offer is being made to purchase the outstanding public shareholding of Tata SSL at a price of Rs 27 for every fully paid up equity share and Rs 2 for every partly paid-up share. The final offer will remain open from January 17 to February 16 and payment in respect of shares accepted in the offer will be made in cash to the shareholders shortly after the offer closure.

 

An option would be provided to the shareholders who due to certain reasons are not in a position to accept the final offer with an exit facility at the same offer price for a period of six months from the final offer opening date (till July 16), the company said in a notice to the Bombay Stock Exchange.

According to the company, the third and final offer is being made by them pursuant to and in compliance with Regulation 21 (3) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulation, 1997, as the company's holding now stands at more than 90 per cent.

Tata Steel had made an open offer to the public shareholders of Tata SSL in October last year to acquire the entire shareholding at a price of Rs 27 for every fully paid up shares and Rs 2 for every partly paid up equity share. Pursuant to the offer, the company acquired 29,51,058 fully paid equity shares and 36,095 partly paid equity shares of Tata SSL, resulting in an increase of its stake in Tata SSL from 83.60 per cent to 92.92.

The first offer had enabled the company to hike its holding in Tata SSL to 83.60 per cent from 44.83 per cent.