REG - Tata Steel Limited - Acquisition of NCRPS of TRF Limited

TATA SteelAnnouncement

08/06/2022 16:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220608:nRSH2072Oa&default-theme=true

RNS Number : 2072O  Tata Steel Limited  08 June 2022

June 8, 2022

 

London Stock Exchange

London

 

Dear Sir, Madam,

 

Sub: Acquisition of 16,50,00,000 (Sixteen crore Fifty lakh), 12.17% (effective
yield)

Non-cumulative, Non-convertible, Non-participating, Redeemable Preference
Shares of TRF Limited ('TRF'), aggregating to ₹165 crore

 

This is to inform you that Tata Steel Limited has on, June 8, 2022, acquired
16,50,00,000
(Sixteen crore Fifty lakh), 12.17% (effective yield) Non-cumulative,
Non-convertible,

Non-Participating, Redeemable Preference Shares ('NCRPS') of face value
₹10/- each of

TRF Limited, aggregating to ₹165 crore ('NCRPS-Series - 1').

 

The details of the acquisition are given in Annexure A.

 http://www.rns-pdf.londonstockexchange.com/rns/2072O_1-2022-6-8.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2072O_1-2022-6-8.pdf)

This disclosure is made in compliance with Regulation 30 of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended.

 

This is for your information and records.

 

 

 

 1.      Industry to which the entity being acquired belongs                             Manufacturing of material handling equipment
 2.      Objects and effects of acquisition (including but not limited to, disclosure
         of reasons for acquisition of target entity, if its business is outside the

         main line of business of the listed entity)                                     The NCRPS are being acquired to assist TRF in meeting its additional working
                                                                                         capital requirements, repayment/prepayment of the whole or a part of the
                                                                                         existing indebtedness of TRF (including to financial or operational creditors)
                                                                                         and/or for other general corporate purposes.

 3.      Brief details of any governmental or regulatory approvals required for the      NA
         acquisition
 4.      Indicative time period for completion of the acquisition

                                                                                         Tata Steel Limited has on June 8, 2022, acquired 16,50,00,000 (Sixteen crore
                                                                                         Fifty lakh), 12.17% (effective yield) NCRPS of face value of ₹10/- each for
                                                                                         an aggregate value of ₹165 crore (NCRPS-Series 1).

 5.      Nature of consideration - whether cash consideration or share swap and details  Cash
         of the same
 6.      Cost of acquisition or the price at which the shares are acquired

                                                                                         16,50,00,000 (Sixteen crore Fifty lakh), 12.17% (effective yield) NCRPS of
                                                                                         face value of ₹10/- each aggregating to ₹165 crore (NCRPS-Series 1) has
                                                                                         been allotted to Tata Steel Limited on private placement basis.

 7.      Percentage of shareholding / control acquired and / or number of shares
         acquired

                                                                                         At present, Tata Steel Limited holds 37,53,275 equity shares of face value of
                                                                                         ₹10/- each aggregating to 34.11% of the equity share capital of TRF,
                                                                                         25,00,00,000, Non-Convertible Redeemable Preference Shares of face value
                                                                                         ₹10/- each and 2,50,00,000 (Two crore fifty lakh), 11.25% Optionally
                                                                                         Convertible Redeemable Preference Shares ('OCRPS') of face value ₹10/- each,
                                                                                         aggregating to 100% of the total preference share capital.

                                                                                         With the above-mentioned acquisition, Tata Steel Limited will also hold
                                                                                         16,50,00,000, - 12.17% NCRPS in TRF.

                                                                                         The voting rights of Tata Steel Limited as a preference shareholder of TRF
                                                                                         will be as per the provisions of the Companies Act, 2013 read with the
                                                                                         Articles of Association of TRF.
 8.      Brief background about the entity acquired in terms of products/line of
         business acquired, date of incorporation, history of last 3 years turnover,

         country in which the acquired entity has presence and any other significant     TRF has been engaged in the business of designing & manufacturing of the
         information                                                                     bulk material handling systems and equipment for core sector industries such

(in brief);                                                                    as power, ports, steel, mining and cement for projects undertaken on Turnkey
                                                                                         basis. The equipment includes Crushers, Screens, Feeders, Conveying equipment,
                                                                                         Mining equipment, Wagon tippler systems and Stacker reclaimer.

                                                                                         TRF primary operates in the following areas:

                                                                                         ·    Electromechanical jobs

                                                                                         ·    Industrial structure and fabrication

                                                                                         ·    Life Cycle Services and allied services

                                                                                         Electro-mechanical jobs and Industrial fabrication specialize in design,
                                                                                         manufacture, erection and commissioning of units or equipment, Life cycle
                                                                                         services helps meet the post commissioning requirement of customer

                                                                                         The manufacturing facility of the Company is located at its Jamshedpur works
                                                                                         on a 21-acre area (covered area: 26,050 sq. mts.) at Burmamines locality.

                                                                                         The turnover/revenue of TRF for the last three financial years are as below:

                                                                                         FY2021-22: ₹127.14 crore

                                                                                         FY2020-21: ₹113.95 crore

                                                                                         FY2019-20: ₹186.41 crore

 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQFLFSSRTITIIF