Merger Of Tata Metaliks Limited With Tata Steel Limited Approved

Mumbai: The Board of Directors of Tata Metaliks Limited (“Board”) at its meeting held on September 22, 2022, considered and unanimously decided to withdraw the existing scheme of amalgamation of Tata Metaliks Limited (‘Tata Metaliks’/ ‘Company’) into and with Tata Steel Long Products Limited, approved earlier at its meeting dated November 13, 2020.

The decision to withdraw the same was taken owing to significant changes in the underlying business conditions of both companies resulting in the dilution of the inherent benefits which were initially envisaged.

Further, the Board considered and unanimously approved a scheme of amalgamation of the Company into and withTata Steel Limited (“Tata Steel”/ “TSL”).

The Board has considered the amalgamation proposal based on independent fairness and valuation opinions and followed the process laid down under the Companies Act, 2013 and Securities, and Exchange Board of India regulations. Based on the reports of the independent valuers, the Board has approved the following swap ratio for the proposed amalgamation: for every 10 shares of Tata Metaliks Limited, 79 shares of Tata Steel Limited.

The proposed amalgamation seeks to enable the business of ductile iron pipes to scale up its operations by leveraging on infrastructure, R&D, digital, and project execution capabilities of Tata Steel. The company will also benefit from the transfer of best practices, human capital, and technical know-how from Tata Steel.

The proposed amalgamation will drive synergies through centralized procurement, optimization of inventories, and better facility utilization. It will also help in reducing overhead and corporate costs in the system and be value accretive for shareholders.

The scheme of amalgamation will now move into a defined regulatory approval process, which includes approval by stock exchanges and the NCLT.

Changes to the Board:

After having completed more than 5 years in leading Tata Metaliks successfully,
Mr. Sandeep Kumar will step down as Managing Director and Key Managerial Personnel of the Company with effect from October 31, 2022 and take up another assignment within the Tata Steel system.

Consequently, the Board of Directors, upon recommendation of the Nomination and Remuneration Committee, has approved the appointment of Mr. Alok Krishnaas an Additional Director of the Company, on and from November 01, 2022. Mr. Krishna is currently the Managing Director of TRF Ltd and will assume the positionof Managing Director & be a Key Managerial Personnel of the Company from November 01, 2022.