REG - Tata Steel Limited - Increase in stakeof Tata Steel in MedicaTSHospital

TATA SteelAnnouncement

10/01/2022 07:00

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RNS Number : 8462X  Tata Steel Limited  08 January 2022

January 8, 2022

 London Stock Exchange

 London

 

Dear Madam, Sirs

 

Sub: Increase in stake of Tata Steel Limited in Medica TS Hospital Private
Limited

 

This is to inform you that the equity stake of Tata Steel Limited
('TSL'/'Company') in Medica TS Hospital Private Limited ('MTSHPL') (a joint
venture company) has increased from 26% to 51% on January 7, 2022, upon
conversion of:

 

a.   5,102 (Five Thousand One Hundred and Two) Optionally Convertible
Debentures ('OCD') of ₹1,000 each, fully paid-up, held in MTSHPL into
5,10,200 (Five Lakh Ten Thousand and Two Hundred) equity shares of face value
₹10/- (Rupees Ten) each, fully paid-up, ranking pari passu with the existing
equity shares of MTSHPL; and

 

b.   4,92,298 (Four Lakh Ninety-Two Thousand Two Hundred and Ninety-Eight)
OCDs of ₹1,000 each, fully paid-up, held in MTSHPL into 4,92,29,800 (Four
Crore Ninety-Two Lakh Twenty-Nine Thousand and Eight Hundred) 0.01% Optionally
Convertible Redeemable Preference Shares ('OCRPS') of face value ₹10/-
(Rupees ten) each, fully paid-up of MTSHPL.

 

(hereinafter referred to as the 'Transaction').

 

The relevant details of the Transaction are enclosed as Annexure A.

 

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

 

This is for your information and records.

 

Annexure A

 

 SN   Particulars                                                                      Details
 a.   Name of the target entity, details in brief  such as size, turnover etc.         Medica TS Hospital Private Limited ('MTSHPL') is a joint venture company
                                                                                       between Tata Steel Limited and Medica Hospitals Private Limited. The Company
                                                                                       is operating and managing its 100 bed multi-specialty hospital established in
                                                                                       Kalinganagar, Odisha to provide health care facility to the general public.

                                                                                       The turnover of MTSHPL for the year ended

March 31, 2021 was ₹34.98 crore.
 b.   Whether the acquisition would fall within related party transaction(s) and       Yes, it is a related party transaction. Pursuant to this transaction, the
      whether the promoter/ promoter group/ group companies have any interest in the   equity stake of TSL in MTSHPL will increase from 26% to 51%.
      entity being acquired? If yes, nature of interest and details thereof and

      whether the same is done at "arm's length"

                                                                                       The transaction is being done at arm's length.
 c.   Industry to   which   the   entity   being acquired belongs;                     Medical and healthcare services
 d.   Objects and effects of acquisition (including but not limited to, disclosure     MTSHPL is an integral part of the Kalinganagar operations of the Company in
      of reasons for acquisition of target entity, if its business is outside the      Odisha and services the employees and community in the area at large.
      main line of business of the listed entity);

                                                                                       The equity stake of TSL in MTSHPL will increase from 26% to 51%.
      Brief details of any governmental or regulatory approvals required for the       Not Applicable

    acquisition;
 e.
 f.   Indicative time period for completion of the acquisition;                        On or before January 10, 2022 (subject to terms and conditions of the
                                                                                       Transaction).
      Nature of consideration - whether cash consideration or share swap and details   Conversion of Optionally Convertible Debentures ('OCD') of MTSHPL into Equity

    of the same;                                                                     Shares and Optionally Convertible Redeemable Preference Shares ('OCRPS')
 g.                                                                                    respectively.
 h.   Cost of acquisition or the price at which the shares are acquired;

                                                                                       1)   Conversion of 5,102 OCD into 5,10,200 Equity Shares of ₹10/- each
                                                                                       aggregating to

₹0.51 crore

                                                                                       2)   Conversion of 4,92,298 OCD into 4,92,29,800, 0.01% OCRPS of ₹10/-
                                                                                       each aggregating to ₹49.23 crore.
 i.   Percentage of shareholding / control acquired and / or number of shares          Upon conversion of OCD, TSL will receive:
      acquired;

                                                                                       a.   5,10,200 Equity Shares of ₹10/- each, fully paid-up; and

                                                                                       b.   4,92,29,800 Optionally Convertible Redeemable Preference Shares of face
                                                                                       value ₹10/- each.

                                                                                       Consequent to this transaction, the percentage holding of TSL in MTSHPL will
                                                                                       increase from 26% to 51%.
 j.   Brief   background about the entity acquired in terms of products/line of        MTSHPL is a private limited Company incorporated having its Registered Office
      business acquired, date of incorporation, history of last 3 years turnover,      at Kalinganagar Industrial Complex, Village-Gobarghati, P.S - Kalinganagar,
      country in which the acquired entity has presence and any other significant      Tahasil - Sukinda, Jajpur-755026, Odisha.
      information (in brief);

                                                                                       MTSHPL is a joint venture Company between Tata Steel Limited & Medica
                                                                                       Hospitals Private Limited. The Company is operating and managing its 100 bed
                                                                                       multi-specialty hospital established in Kalinganagar Odisha to provide health
                                                                                       care facility to the general public.

                                                                                       Date of Incorporation: August 5, 2014

                                                                                       The turnover of MTSHPL for last 3 years is as below:

                                                                                       i. FY-2018-19: ₹14.57 crore.

                                                                                       ii. FY-2019-20: ₹18.96 crore.

                                                                                       iii. FY-2020-21: ₹34.98 crore.

 

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