Tata Steel Limited has signed agreements to acquire shares and invest in Millennium Steel Company, aiming to enhance its position in Thailand's growing steel market.

Information on the Target

Tata Steel Limited has entered into Definitive Agreements with Cementhai Holding Company, a wholly-owned subsidiary of the Siam Cement Company based in Thailand, to acquire shares and invest additional equity in Millennium Steel Company, contingent upon certain conditions. Cementhai Holding Company currently holds a 40% equity stake in Millennium Steel and has agreed to sell its shares through a voluntary tender offer initiated by Tata Steel, which will encompass all equity and preference shares of Millennium Steel, also subject to conditions precedent.

The transaction's conditions include obtaining approvals from shareholders and creditors for the issuance of new shares representing a 24.99% stake in the expanded capital of Millennium Steel, amending the Articles of Association to permit 100% foreign ownership, and receiving regulatory approvals from Thailand's Board of Investment. Tata Steel's tender offer will be made at Baht 1.15 per share.

Industry Overview in Thailand

Thailand's steel industry has evolved significantly over the past two decades, with Millennium Steel emerging as the leading player. Formed in 2002 through the merger of three operating companies—The Siam Iron and Steel (2001) Company, The Siam Construction Stee