Who said Tata’s are not aggressive??????????
Action speaks louder than words – This goes true with this historic deal.
A deal, which started at 455 pence a share on October 17, 2006 and finally closed at 608 pence speaks all the aggression of Tata’s. Deal values Corus at an enterprise value of $13.6 billion or 9 times its EBITDA for 2005-06. At 455 pence per share, which Tata was offering to Corus shareholders, the buy was to be at a 26 per cent premium to the 12-month average price of Corus. Finally, the deal was closed at a premium of 33% of the original bid amounting to $11.3 Billions.
A company buying out another company that is six times its own size by paying nine times the EBITDA value………….Does that happens very often???????????
Definitely not!
When entire India was sleeping in the wee hours, Mr. Tata gave a final touch to something that will be written with golden words in the Bible of India inc. – “ Biggest ever Global acquisition by Indian firmâ€. As history was in the making thousand of miles away from Bombay House, he spent a sleepless night monitoring the Corus action. The effort is more than one sleepless night.
Sir! You have made all the Indians proud by making the biggest ever Indian Acquisition in overseas market and second largest in the global steel industry. The deal has redefined India’s standing in international arena with the world fifth largest steel producer having its root to India.
Media shy, reticent, introvert and a low profile tycoon – that’s how you define the most respected chieftains of the Indian corporate world, Mr. Ratan Tata fondly referred as RNT. At 69 RNT, still the most eligible bachelor of corporate world. Mr. Tata has grown taller by an inch after adding Corus to his kitty.
This is the perfect time to read the statement made by Jamsetji in 1899. This deal is the best tribute to the legacy of Jamsetji Nusserwanji Tata. Furthermore, to mark the centenary of Tata steel there can not be a better birthday gift than taking the company from 56 to 5th largest producer of steel in the world.
Do you mean to say that Tatas propose to make steel rails to British specifications? Why, I will undertake to eat every pound of steel rail they succeed in making
SIR FREDERICK UPCOTT
CHAIRMAN, BOARD OF INDIAN RAILWAYS, IN 1907 WHEN TATAS PROPOSED TO MAKE STEELOur young man have proved that they can not only hold their own against the best rivals in Europe on the latter’s ground but can beat them hollow.
Jamsetji Tata
Founder of Tata Group in West coast Spectator,February 9, 1899.
This deal is a step forward by the torchbearer of Indian Corporate World towards making India the third richest economy in world by 2020.
Long live Tata’s and their vision!!!!!!!!!!!!!!!!!
Amit Khandelia
(The Author is a Chartered Accountant working with TATA group)
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Tata proved it’s desperate aggression…