Click to play videoNew Delhi: Tata Steel on Wednesday received a thumping vote of confidence for its $12 billion takeover bid for Corus Group Plc, with shareholders having 96 per cent equity in the Anglo-Dutch company voting in support of the deal.
The deal is expected to become effective on April 2.
The deal is perhaps one the biggest international victories for India Inc after the Mittal-Arcelor takeover.
In a keenly-watched auction, India’s Tata Steel emerged victorious in the battle for Anglo-Dutch steel giant Corus, as Brazil’s Companhia Siderurgica Nacional - the other contender - withdrew from the race.
The takeover marks the largest acquisition by an Indian firm till date and will propel the new entity led by Tatas to become the fifth largest steel maker in the world.
Holders of 96 per cent shares of Corus Group voted in favour of Tata's bid at an extraordinary general meeting held on Wednesday, where about 23 per cent shareholders voted by proxy.
Corus Board had recommended Tata Steel's revised offer of 608 pence a share after the Indian giant outbid a 603 pence offer from rival suitor Brazil's CSN in a regulator-held nine round auction late in January.
Interestingly, Tata Steel has already acquired close to 22 per cent stake in Corus since winning the auction through open market transactions.
Meanwhile, sources close to the development have been quoted by PTI by saying Tata Steel might raise most of the additional sum required to fund the deal in form of equity rather than the debt facilities.
Tata Steel Managing Director B Muthuraman said in a statement: "We are pleased with the outcome of the EGM held today and stand committed to work along with Corus to create a vibrant and value-creating enterprise."
With agency inputs
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