Tata Steel acquires Thailand''s Millennium Steel
15 December 2005
Mumbai: Tata Steel Ltd has acquired Millennium Steel by taking over the 40-per cent stake of Cementhai Holding Company, a wholly-owned subsidiary of Siam Cement Group Company, Thailand. Tata Steel plans to purchase additional 24.9 per cent through a fresh equity issue.
Acquiring a 100-per cent stake in Millennium Steel would cost Tata Steel approximately $175 million, if it were to make an open offer. The transaction would be subject to shareholder approval of both Tata Steel and Millennium Steel as well as all regulatory approvals in Thailand and India. Tata Steel, which acquired Singapore's NatSteel Ltd. last year giving it downstream steel processing plants in China and Thailand, had been searching for more assets in Asia as part of its $23 billion expansion programme over the next 12 to 15 years.
In November 2005, Tata Steel had signed a share subscription agreement and a joint venture agreement with BlueScope Steel Ltd, Australia, to form a 50:50 JV in India to manufacture zinc and aluminium metallic coated steel, painted metallic coated steel and roll-formed steel products and deliver pre-engineered buildings and other building solutions.
The company has also signed a MoU with the government of Jharkhand to set up a new greenfield steel project and also enhance its existing capacity at Jamshedpur.