Corus to list additional 49 mn shares on LSE
Anglo-Dutch steel giant Corus Group says it plans to list additional 49 million shares on the London Stock Exchange.business Updated: Mar 13, 2007 06:54 IST
Anglo-Dutch steel giant Corus Group, whose shareholders last week approved its takeover by India's Tata Steel, on Monday said it plans to list additional 49 million shares on the London Stock Exchange.
Corus said in a regulatory filing in London that application has been made to the UK Listing Authority and London Stock Exchange for block listings totalling 49 million ordinary shares of 50 pence each to trade on the LSE.
However, the additional shares would not impact the price to be paid by Tata Steel, as its offer of about $12 billion accounts for both the issued and to-be issued share capital of the UK-listed firm, said an analyst.
The company said the new shares would rank equally with the existing issued shares of the company.
The block listings consist of 43 million shares to be issued under the Leverage Equity Acquisition Plan and 6 million shares to be issued under the Executive Share Option Scheme, it added.
Corus shares were trading 0.50 pence down at 605.4 pence in afternoon trade on LSE.
Tata Steel has already acquired close to 22 per cent stake in Corus since making its winning bid of 608 pence a share. The deal is expected to be effective from April 2.
Corus shareholders had approved the deal, which would make Corus a wholly-owned subsidiary of Tata Steel, on March 7 with a whopping majority of over 96 per cent.
Under the scheme of arrangement, trading in Corus shares on LSE and Amsterdam Stock Exchange and trading in Corus ADSs on New York Stock Exchange would be suspended from March 29.