A Group Presentation

8/14/2019 A Group Presentation

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A Group presentationPRESENTED

BY

FIRST SEMESTER

SWETA SINGH,

SECOND SEMESTER

AKANSHA SINGH, DILEEP PANDEY


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SUBJECT

ACQUISITION

OF

TATA STEEL &


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NEWS FLASH


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News

On 20 October 2006 the board ofdirectors of Anglo-Dutchsteelmaker Corus accepted a $7.6billion takeover bid from Tata Steel, the Indian steel company.
http://en.wikipedia.org/wiki/Corus_Grouphttp://en.wikipedia.org/wiki/Tata_Steelhttp://en.wikipedia.org/wiki/Tata_Steelhttp://en.wikipedia.org/wiki/Corus_Group


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THE INVOLVED COMPANIES

TISCO

(Tata iron & steel company ltd.)

Anglo-Dutch steelmaker corus


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Glimpse on TATA STEEL

It is part of the Tata Group ofcompanies.

Tata Steel, formerly known as TISCO(Tata Iron and Steel Company Limited)

the world's 56th largest and India's2nd largest steel company with anannual crude steel capacity of 3.8million tonnes.
http://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Tata_Steelhttp://en.wikipedia.org/wiki/Limited_companyhttp://en.wikipedia.org/wiki/Limited_companyhttp://en.wikipedia.org/wiki/Tata_Steelhttp://en.wikipedia.org/wiki/Tata_Group


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It is based inJamshedpur,Jharkhand, India.

Post Corus merger, Tata Steel was India's second-largest and second-most profitable company inprivate sector with consolidated revenues of Rs1,32,110 crore and net profit of over Rs 12,350crore during the year ended March 31, 2008.

The company was also recognized as the world'sbest steel producer by World Steel Dynamics in2005. The company is listed on BSE and NSE; andemploys about 82,700 people (as of 2007).
http://en.wikipedia.org/wiki/Jamshedpurhttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Crorehttp://www.worldsteeldynamics.com/http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.worldsteeldynamics.com/http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Jamshedpur


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2 minutes for corus

Corus was formed from the merger ofKoninklijke Hoogovens N.V. with BritishSteel Plc on 6 October 1999.

It has major integrated steel plants atPort Talbot, South Wales; Scunthorpe,North Lincolnshire; Teesside, Cleveland

(all in the United Kingdom) andIJmuiden in the Netherlands.


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It also has rolling mills situated at Shotton, North Wales(which manufactures Colorcoat products), Trostre inLlanelli, Llanwern in Newport, South Wales, Rotherham andStocksbridge, South Yorkshire, England, Motherwell, NorthLanarkshire, Scotland, Hayange, France, and Bergen,Norway.

In addition it has tube mills located at Corby, Stockton andHartlepool in England and Oosterhout, Arnhem,Zwijndrecht and Maastricht in the Netherlands.


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Synergies between the two companies

Tata was one of the lowest coststeel producers in the world andhad self sufficiency in raw material.

Corus was fighting to keep its

productions costs under controland was on the look out for sourcesof iron ore.


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Tata had a strong retail and distribution

network in India and SE Asia.

There would be technology transfer and

cross-fertilization of R&D capabilitiesbetween the two companies that specializedin different areas of the value chain.


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strong culture fit between the two organizations both of which highly

emphasized on continuous improvement and ethics.

TATA CORUSTrusteeship

integrity

Respect for individualcredibility and excellence

Code of ethics

Integrity

Creating value in steelCustomer focus

Selective growth


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Timelines

On October 20, 2006, Tata Steel

announced that it had agreed to pick up a100% stake in the Anglo-Dutch steel makerCorus at 455 pence per share in an all cashdeal, cumulatively valued at GBP 4.3 billion(USD 8.04 billion).

On November 19 2006, the Brazilian steelcompany CSN launched a counter offer forCorus at 475 pence per share, valuing it at

$8.4 billion.


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On December 11, 2006, Tata preemptively upped theoffer to 500 pence, which was within hours trumped byCSN's offer of 515 pence per share, valuing the deal at $9.6 Billion. The Corus board promptly recommended boththe revised offers to its shareholders.

On December 11, 2006, CSN announced a formal offer forthe Company at an offer price of 515 pence per Corus

Share , valuing the deal at $ 9.6 Billion.. The CSNAcquisition would also be implemented by way of ascheme of arrangement and is subject to a pre-conditionthat either Corus Shareholders reject the Tata Scheme orthe Tata Scheme is otherwise withdrawn by Corus orlapses. The Corus board promptly recommended both therevised offers to its shareholders.


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Also on December 19, 2006, UK

Watchdog the Panel on Takeoversand Mergers announced that thelast date for each of Tata and CSNto announce revised offers for theCompany, should they wish to doso, is 30 January 2007. They alsowarned that it would begin an

auction procedure if the tworemained in competition.


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On January 31 2007 TataSteel won their bid for

Corus after offering 608pence per share, valuing

Corus at $11.3bn


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Final seal structure

$3.53.8bn infusion from TataSteel ($2bn as its equitycontribution, $1.51.8bn through a

bridge loan)

$5.6bn through a LBO ($3.05bnthrough senior term loan, $2.6bnthrough high yield loan)


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New Board formulation

Mr. R.N. Tata is the Chairman of TataSteel and Corus

Mr. Jim Leng is the deputy chairman of

Tata Steel and CorusMr. B Muthuraman, Mr. Ishaat Hussainand Mr. Arun Gandhi to join the Corusboard

A Group Presentation

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