Tata Steel’s board has approved Neelachal Ispat Nigam Limited, a wholly owned subsidiary of the company, to merge with itself, and has approved an investment of $2 billion in its wsubsidiary companyT Steel Holdings Pte.
Neelachal Ispat Nigam operates an integrated steel plant located in Duburi, Kalinganagar, Odisha, with a rated crude steel production capacity of 0.98 million tons per annum. It holds a mining lease for a captive, fully mechanized open-cast iron ore mine located in Sundergarh and Keonjhar districts, Odisha.
“The amalgamation will consolidate the Transferor Company into and with the Transferee Company, which will result in operational efficiencies and business synergies. In addition, the resulting simplified corporate holding structure will bring agility to business ecosystem of the merged entity.” the company said in a statement
$2 billion Investment
T Steel Holdings Pte, the company in which Tata Steel has announced a $2 billion investment, is a wholly owned foreign subsidiary of Tata Steelwhich was incorporated in Singapore on July 5, 2006. The primary business of TSHP includes holding equity shares of indirect overseas subsidiaries of Tata Steel and other entities.
Tata Steel said that the proposed fund infusion will be used by TSHP to support the overseas subsidiaries’ business operations (including capex and restructuring costs) and to repay or prepay existing debt in multiple tranches.
Hospital acquisition
Tata Steel’s board has also cleared the acquisition of a stake in Medica TS Hospital Private (Medica TS Hospital) from Manipal Hospitals Eastern India for Rs 1.49 crore, exchange filing shows.
Medica TS Hospital owns and operates a multi-speciality hospital in the Kalinganagar Industrial complex, Odisha, with an existing capacity of 100 beds.
Tata Steel said that the hospital is the only multi-speciality facility in Kalinganagar and is critical for healthcare access for Tata Steel’s employees, contract workers, their families, and the local community. Acquiring full control of the hospital operations will enable Tata Steel to strengthen access to healthcare in the Kalinganagar region
