Tata steel sells majority stake in refractory unit
April 21st, 2011 - 5:57 pm ICT by IANSMumbai, April 21 (IANS) Tata Steel Thursday said it would sell 51 percent stake of its refractory unit — Tata Refractories Ltd (TRL) — to Japanese firm Krosaki Harima Corporation.
“The transaction is based on an equity valuation of TRL at approximately Rs.1,130 crore and is subject to approval of relevant regulatory authorities in India and Japan,” the company said in a regulatory statement.
According to the statement, after the completion of the transaction, Tata Steel’s current stake of 77.46 percent in the unit would come down to 26.46 percent.
The company further said that the new association with Krosaki Harima, which has leading Japanese steel manufacturer Nippon Steel as a majority shareholder, would provide TRL with access to latest technologies and help in diversification of its product portfolio.
Currently, TRL is India’s largest refractory manufacturer with a consolidated installed capacity of 304,760 tonnes per annum. The company has key customers in various industries like steel, cement, glass, copper and aluminium.
Tata Steel’s scrip at the Bombay Stock Exchange grew by 0.60 percent at Rs.628.75 at the end of the day’s trading.
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