London/Mumbai: Corus Group Plc., the UK steelmaker acquired by India’s Tata Steel Ltd, is offering to buy back €800 million (Rs4,480 crore) of its bonds.
The London-based company will repurchase on 7 June any of the 7.5% bonds due in October 2011 at a price of 101% of their face value, Corus said in a statement. The notes are currently trading at 106.5%, according to Deutsche Bank AG prices.
Tata Steel, which won an auction to buy Corus for £6.2 billion (Rs50,840 crore) in January, has yet to announce how it intends to refinance Corus’ £838 million of outstanding bonds. Corus was required to make the buyback offer under a so-called change-of-control clause in the bonds that was triggered by the takeover.
“We have offered a 1% premium to bond holders and will await their response,” said Koushik Chatterjee, vice-president of finance at Tata Steel speaking from Singapore.
Hamish Risk and Simon Casey contributed to this story