December 16, 2021
Singapore Stock Exchange,
Singapore
Dear Madam, Sirs,
Sub: Acquisition of Redeemable Preference Shares of Angul Sukinda Railway Limited
This is to inform you that Tata Steel Limited ('the Company/TSL') has on December 15, 2021, executed a long-term agreement with Angul Sukinda Railway Limited ('ASRL'), for the construction, operation and maintenance of an alternate railway line ('Additional Rail Line'). The agreement is for a period of 20 (twenty) years to meet the logistic requirements of TSL's Kalinganagar Steel Plant. TSL will be funding the entire expenditure of ₹400 crore (in a phased manner) for construction of the Additional Rail Line by subscribing to 40,00,00,000 (Forty-crore)non-convertible,non-cumulative, redeemable preference shares of face value ₹10/- (Rupees ten) each ('RPS') of ASRL ('Transaction").
The relevant details of the Transaction are enclosed as Annexure A.
This disclosure is being made in compliance with Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
This is for your information and records.
Yours faithfully,
Tata Steel Limited
Parvatheesam Kanchinadham
Company Secretary &
Chief Legal Officer (Corporate & Compliance)
Registered Office Bombay House 24 Homi Mody Street Fort Mumbai 400 001 India
Tel 91 22 6665 8282 Fax 91 22 6665 7724 Website www.tatasteel.com
Corporate Identity Number L27100MH1907PLC000260
Annexure A | ||
SN. | Particulars | Details |
Angul Sukinda Railway Limited ('ASRL'), is a | ||
public limited company incorporated on | ||
February 20, 2009 having its Registered Office | ||
at Plot No.: 25/381/902, Samantapuri, Press | ||
Chhak, Gajapatinagar, Bhubaneswar, Odisha. | ||
ASRL was incorporated as a special purpose | ||
vehicle by the Ministry of Railways, for | ||
Name of the target entity, details in brief | developing, financing, construction, operation | |
a. | and maintenance of a 104.24 km broad gauge | |
such as size, turnover etc.; | single railway line between Angul and Sukinda | |
in Odisha to establish direct link between (1) | ||
iron-ore rich areas of Odisha viz. Joda-Barbil | ||
to steel and sponge iron industries in Angul | ||
region and (2) between coal mining region in | ||
Talcher to industries in Jakhapura, Joda- | ||
Barbil and areas in Kendujhar district, Odisha. | ||
Turnover of ASRL as on March 31, 2021 is | ||
₹539.62 crore. | ||
Whether the acquisition would fall within | ||
related party transaction(s) and | ||
whether the promoter/ promoter group/ | ||
b. | group companies have any interest in | No |
the entity being acquired? If yes, nature | ||
of interest and details thereof and | ||
whether the same is done at "arm's | ||
length" | ||
c. | Industry to which the entity being | Infrastructure (Railway) |
acquired belongs; | ||
Objects and effects of acquisition | Construction of an Additional Railway Line for | |
(including but not limited to, disclosure of | ||
d. | reasons for acquisition of target entity, if | Tata Steel Limited to meet the logistic |
its business is outside the main line of | requirement of TSL's Kalinganagar Steel | |
business of the listed entity); | Plant. | |
Brief details of any governmental or | Approval obtained vide Government of India / | |
e. | regulatory approvals required for the | Ministry of Railways (Railway Board) Letter |
acquisition; | No. 2006/Infra/12/4 dated August 2, 2021. |
Registered Office Bombay House 24 Homi Mody Street Fort Mumbai 400 001 India
Tel 91 22 6665 8282 Fax 91 22 6665 7724 Website www.tatasteel.com
Corporate Identity Number L27100MH1907PLC000260
SN. | Particulars | Details | |||||||||
f. | Indicative time period for completion of | December | 31, 2024 (subject to terms and | ||||||||
the acquisition; | conditions of the Transaction). | ||||||||||
Nature of consideration - whether cash | |||||||||||
g. | consideration or share swap and details | Cash | |||||||||
of the same; | |||||||||||
h. | Cost of acquisition or the price at which | ₹400 Crore (Rupees Four | Hundred | Crore | |||||||
the shares are acquired; | only) | ||||||||||
TSL will acquire 40,00,00,000 (Forty crore) | |||||||||||
Percentage of shareholding / control | non-convertible,non-cumulative, redeemable | ||||||||||
i. | preference | shares | of | face | value | of | ₹10/- | ||||
acquired and / or number of shares | (Rupees ten) each | in | a phased | manner, | |||||||
acquired; | |||||||||||
redeemable at the end of twenty (20) years or | |||||||||||
earlier, as per the terms of issuance. | |||||||||||
Angul Sukinda Railway Limited, a special | |||||||||||
purpose vehicle, was incorporated by the | |||||||||||
Ministry of Railways (MOR) for developing, | |||||||||||
financing, | construction, | operation | and | ||||||||
maintenance of a 104.24 km broad gauge | |||||||||||
single railway line between Angul and Sukinda | |||||||||||
in Odisha to establish direct link between iron- | |||||||||||
ore rich areas of Odisha viz. Joda-Barbil to | |||||||||||
Brief background about the entity | steel and sponge iron industries in Angul | ||||||||||
acquired in terms of products/line of | region and between coal mining region in | ||||||||||
business | acquired, | date | of | Talcher to industries in Jakhapura, Joda- | |||||||
j. | incorporation, history of last 3 years | Barbil and areas in Kendujhar district. | |||||||||
turnover, country in which the acquired | |||||||||||
entity has presence and any other | Date of Incorporation: February 20, 2009 | ||||||||||
significant information (in brief); | Turnover of ASRL for last 3 years: | ||||||||||
i. FY-2018-19 (as on March 31, 2019): | |||||||||||
₹238.21 crore. | |||||||||||
ii. FY-2019-20 (as on March 31, 2020): | |||||||||||
₹303.08 crore. | |||||||||||
iii. FY-2020-21 (as on March 31, 2021): | |||||||||||
₹539.62 crore. |
Registered Office Bombay House 24 Homi Mody Street Fort Mumbai 400 001 India
Tel 91 22 6665 8282 Fax 91 22 6665 7724 Website www.tatasteel.com
Corporate Identity Number L27100MH1907PLC000260
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Tata Steel Ltd. published this content on 16 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 December 2021 09:08:05 UTC.