Tata Steel to raise Rs 6,000cr to fund Corus deal

New Delhi, July 30 (UNI) Tata Steel today said it will increase the amount of Preference Shares issue from Rs 4,350 crore to Rs 6,000 crore, to fund the Corus buy and increase the contribution from Tata Steel/Tata Steel Asia Ltd, from 6.7 billion dollar to 7.4 billion dollar.

Tata Steel, through its wholly-owned subsidiary, Tata Steel Asia Holdings Pte Ltd has already completed the acquisition of Corus Group Ltd, at a total cost of 13 billion dollars.

''Other detailed terms of the preferential issues will be finalised closer to the time of the issue,'' Tata Steel said in a statement.

The Rights Issue of Equity Shares will remain the same at the ratio of 1:5 at a price of Rs 300 per share.

Apart from the funds raised through equity capital in the last 12 months and the proposed Rights Issue of Equity Shares and Convertible Preference Shares and long-term debt already raised by the Tata Steel, the balance of the funds, the company informed, if required would be raised through structured issues in the foreign markets.

This will be within the amounts approved by the shareholders at the Annual General Meeting held on July 5, 2006 and the approval sought at the forthcoming Annual General Meeting scheduled on August 29, 2007.

The overall objective of the financing package is to raise the required resources in the most cost-effective manner for Tata Steel/Tata Steel Asia Holdings Pte Ltd and well within the ability of the Tata Steel Group to service the total investment, the statement said.

UNI