New Delhi : Tata Steel Monday said it had formally concluded the buyout of Anglo-Dutch steel major Corus for $13 billion through its wholly-owned arm, Tata Steel Asia Holdings, and reported record income for the first quarter.
The Jamshedpur, Jharkhand-based steel producer, in its board meeting in Mumbai, also decided to increase its contribution in Corus from $6.7 billion to about $7.4 billion, the company said in a statement.
This contribution is being enhanced by raising the quantum of preference shares to be issued by Corus. "The other detailed terms of this issue will be finalised closer to the time of the issue," the statement said.
"The overall objective of the financing package would be to raise the required resources in the most cost-effective manner for Tata Steel and Tata Steel Asia and well within the ability of the group to service the total investment."
The combined Tata-Corus Company will have a crude steel production of 27 million tonnes in 2007 and will be the world's fifth largest steel producer with 84,000 employees across four continents.
The company also registered an impressive growth its net income to Rs.12 billion in the first quarter of this fiscal from Rs.9.53 billion in the same period last year.
Corus is Europe's second largest steel producer, with a high value added product range and strong positions in automotive, construction and packaging sectors.