Tata to takeover Millennium

Tata to takeover Millennium

Tata Steel Limited announced that it signed Definitive Agreement with Cementhai Holding Company - a fully-owned subsidiary of the Siam Cement Company, Thailand to acquire its Millennium Steel Company shares. According to the agreement, Tata Steel will buy 40 percent equity stake of Millennium Steel owned by Cementhai Holding Company and also new shares to be issued which will account for 24.99 percent stake in the expanded capital. However, the issuance of new shares is subject to shareholder and creditor approvals. Changing the Articles of Association of Millennium Steel to enable 100% foreign ownership in Millennium Steel, and regulatory approvals are also other conditions for the agreement. Tata Steel will pay Baht 1.15 ($0.037) per share for both the existing stocks and the ones to be issued. Tata Steel's total investment is expected to reach $400 million. Millennium Steel was formed through the merger of three companies: Siam Iron and Steel Company, Siam Construction Steel Company and NTS Steel Group . The company has 1.2 million tons steel per annum production capacity through electric arc furnace and 1.7 million tons per annum long product rolling capacity. The investment is a significant progress in Tata Steel's globalisation initiatives and, together with the earlier acquisition of NatSteel's steel business, will significantly enhance its market position in South East Asia.