Tata Sponge is vehicle for acquiring Usha Martin steel business

Tata Steel said its subsidiary, Tata Sponge, would be the strategic vehicle to undertake acquisition of Usha Martin’s (UML’s) steel business. 

Tata Sponge’s board of directors, it was stated, would do the acquisition through a slump sale and had, accordingly, executed an agreement with Tata Steel and UML.

The board had done so, went the statement, after having evaluated independently the asset, financial forecasts, synergies, prospects and risks; also, the funding options.

The board of Tata Sponge has adopted a financing plan for the acquisition, where along with its internal cash and cash equivalent resources it would raise financing by way of a