Tata Steel pooling funds for Corus
Posted on: 10:44 PM IST Apr 10, 2007
New Delhi: Tata Steel, the world's fifth-largest steel maker, will hold a Board meeting on April 17 to consider raising long-term funds for its 12 billion dollar takeover of Anglo-Dutch firm Corus Group Plc.
The Indian steel giant, which is scheduled to make the final payments to Corus shareholders tomorrow, is understood to have already made necessary funding arrangements through short-term borrowings from a consortium of banks, including Lloyds TSB, Deutsche Bank and ABN Amro.
The company's board would consider raising long-term financing resources for Corus at its meeting on April 17, sources close to the development said.
The company today informed the Bombay Stock Exchange that the Board would consider proposals to finance investment in the Special Purpose Vehicle floated for acquiring Corus.
Tata Steel had outbid Brazil's CSN to acquire Corus at a price of 608 pence a share after a nine-round auction in January, making it the world's fifth-largest steel firm.
The Indian company has already spent close to 2.5 billion dollars for acquiring about 21 per cent stake in Corus through open market transactions. Tata Steel officials had said earlier the group would contribute about 4.1 billion dollars in cash, while the remaining would be raised through debt.
Tata Steel UK Plc, a subsidiary of the Indian firm, had said last week the consideration money and applicable loan note certificates for the takeover would be dispatched to Corus shareholders on April 11.
With excerpts from PTI