Following the 97-per cent approval by the shareholders of Corus Group Plc to Tata Steel's $12-billion takeover yesterday, the acquisition is scheduled to take effect on 2 April. Corus shares will stop trading on the UK exchanges on 29 March.
The stage is now set for the implementation of the special resolution to amend the articles of association of Corus to cancel its shares and reduce its share capital while simultaneously increasing its authorised capital to authorise the new allotment of shares in favour of Tata Steel's wholly owned UK Subsidiary, Tata Steel UK.
At a court-convened meeting in the UK followed by an extraordinary general meeting, Corus shareholders had approved the acquisition by Tata steel for 608 pence a share.
Philippe Varin, CEO, Corus Group, had said in an interview that the intention of the acquisition was growth, not job losses.
On 31 January, this year, Tata Steel had outbid its Brazilian rival, CNS to acquire Corus, the former British Steel Plc - the second-largest steel acquisition, behind Mittal Steel Co.`s $38.3-billion takeover of Arcelor SA last year.
Corus shares rose to 605 pence in London's noon trade yesterday, up from valuing the company at about $11 billion. The stock was at 407.5 pence on October 5, when Tata said it was considering an alliance.
also see : CSN
blinks at 603p, Tata Steel bags Corus for $12.11 billion