REG - Tata Steel Limited - Tata Steel Limited - Press Release - Divestment

TATA SteelAnnouncement

28/01/2019 07:05

RNS Number : 2422O
Tata Steel Limited
28 January 2019
 


                                                                                                                 January 28, 2019
 
 




London Stock Exchange
London
 
 


 




Dear Madams, Sirs,
 
Sub: Sale of shares in NatSteel Holdings Pte. Ltd. (NSH) and Tata Steel (Thailand) Public Company Ltd. (TSTH)
 
This is to inform you that Tata Steel's step-down subsidiary - T S Global Holdings Pte. Ltd. (TSGH) has executed definitive agreements to divest its entire equity stake held in NSH (100%) and TSTH (67.9%) to a company in which 70% equity shares will be held by an entity controlled by HBIS Group Co., Ltd (HBIS) and the balance 30% will be held by TSGH. TSGH is a wholly owned subsidiary (WOS) of T. Steel Holdings Pte. Ltd which in turn is a WOS of Tata Steel Limited.
 
The details of divestment are as follows:
 




SN.


Particulars


Details






1


The amount and percentage of the turnover or revenue or income and net worth contributed by such unit or division of the listed entity during last Financial Year


Revenue for FY18:
NSH: Rs. 5,181 crore (3.9%)
TSTH: Rs. 4,361 crore (3.3%)
 
Net Worth as at March 31, 2018:
NSH: Rs. 1,039 crore (1.7%)
TSTH: Rs. 1,303 crore (2.1%)




2


Date on which the agreement for sale has been entered into


January 28, 2019




3


The expected date of completion of sale / disposal


In 3 - 4 months subject to regulatory approvals




4


Consideration received from such sale / disposal


USD 327 million and equity stake of 30% in the entity held by HBIS Group and TSGH on 70/30 basis.




5


Brief details of buyers and whether any of the buyers belong to the Promoter / Promoter Group/ Group Companies. If yes, details thereof;


 
The buyer will be a company in which the HBIS Group of China will hold majority shares (70%).
 
HBIS Group was established on

June 30, 2008 by merger of Tangshan Iron and Steel Group and Handan Iron and Steel Group of Hebei Province. HBIS is amongst the largest steel makers in the world. It is a state-owned enterprise in China and is leading player in China's home appliance, automotive steel, and supplies steel for nuclear power, marine engineering, bridges and construction. With revenue in excess of USD 40 billion and total assets exceeding USD 50 billion, HBIS ranks 239th among Fortune Global 500.




6


Whether the transaction would fall within Related Party Transaction? If yes, whether the same is done at "arms length"


No




7


Additionally, in case of a slump sale, indicative disclosures provided for amalgamations / merger, shall be disclosed by the listed entity with respect to such slump sale.


Not Applicable




 
 
Further, please find enclosed the press release titled "T S Global Holdings Pte. Ltd.

(a wholly owned subsidiary of Tata Steel) signs definitive agreements with HBIS Group in Beijing to divest majority stake in its South-East Asia business".
 

http://www.rns-pdf.londonstockexchange.com/rns/2422O_1-2019-1-28.pdf

 
This disclosure is being made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
 
This is for your information and records.
 




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