Tata-Corus deal gets UK court approval

LONDON: Anglo-Dutch steelmaker Corus Group on Tuesday said its 12 billion dollar takeover by Indian steel giant Tata Steel has been approved by the UK court -- paving the way for completion of the deal early next week.

The High Court of Justice in England and Wales sanctioned the scheme of arrangement related to Corus' acquisition by Tata Steel on Tuesday at a price of 608 pence a share, the London Stock Exchange listed firm said in a regulatory filing.

Corus expects the transaction to be effective on April 2.

The court decision follows approval of the deal by Corus shareholders with an overwhelming majority of over 96 per cent on March 7.

Corus said that trading in its shares at LSE and Amsterdam Stock Exchange and in American Depositary Shares at New York Stock Exchange was expected to be suspended on March 29 while another court hearing was scheduled for March 30 to confirm the reduction in the company's equity capital.

Tata Steel had said on February 7 that it plans to despatch the consideration pursuant to the scheme as soon as possible on or after April 2.

The Indian firm is required to despatch the consideration not more than 14 days after the effective date of the transaction.