Tata Steel will sell equity shares worth $2.3 billion
in domestic and overseas markets, besides $6.1 billion
in debt to fund acquisition of Anglo-Dutch firm Corus
board of directors of the company cleared a host of proposals,
including a rights issue, a convertible preferential shares
issue and an overseas equity-related issue to raise a
total of $12.9 billion.
company would raise $4.1 billion in equity and $6.14 billion
in long-term debt from banks. It will arrange $2.66 billion
through a mix of quasi-equity and capital funding at its
subsidiary Tata Steel Asia Singapore.
Steel, which won the take-over battle for Corus in January,
said the net cost of the acquisition would be $12.9 billion.
acquisition, which catapulted Tata to the world''s fifth-largest
steel producer, is funded by equity of $4.1 billion and
$6.14 billion in long-term debt from a consortium of banks.
remaining $2.66 billion has been raised in bridge finance,
the company said.
company said it would raise Rs3,655 crore ($872 million)
through a rights share issue. One rights share will be
offered at Rs300 for every five shares held. It also plans
to raise Rs4,350 crore on rights basis through an offering
of convertible preference shares, it said.
Steel, nmeanwhile, is looking forward to begin work on
its 6-million tonne per annum (mtpa) steel project in
Orissa''s Kalinganagar Industrial Complex within three