Tata Steel is a big gainer on the BSE today morning, hitting a new 52-week high today at Rs.692.
The company announced yesterday evening after market hours that a major hurdle has been tackled – it has separated the British Steel Pension Scheme from Tata Steel UK and some affiliates; this helps smoothen the way to merge its European operations with that of Germany’s Thyssenkrupp AG.
Tata Steel, as per the earlier proposed agreement, paid the pension fund 550 million pounds and 33% stake in the company. Tata Steel has also agreed to sponsor a new proposed pension scheme, subject to certain conditions, and has invited all members to transfer to the new scheme which will have lower future annual increases for pensioners.
The company has stated though that the net impact of this settlement and the payment of 550 million pounds will reflect in Q2FY18 performance.