Tata Steel has completed its 51 per cent stake sales in Tata Refractories Ltd to Krosaki Harima Corp, a unit of Japan’s Nippon Steel, for Rs 1130 crore, the company said in a press release to the stock exchanges on Tuesday. Post-sales, Tata Steel holds 26.46 per cent stake in Tata Refractories in which Krosaki Harima is a strategic partner.
“The company has completed the transaction and received the relevant consideration for the transfer of 51 per cent equity shares of TRL out of its current stake of 77.46 per cent stake in TRL to Krosaki Harima Corporation of Japan at an equity valuation of Rs 1,130 crore,” Tata Steel said in a filing to the Bombay Stock Exchange.
Earlier, on April 21, the leading steel maker had announced that it had entered into definite agreement with the Japanese firm for the deal.
Tata Steel will continue to hold 26.46 per cent stake in TRL – the largest domestic refractories manufacturer. Bringing in KHC as strategic partner will help bring technical expertise into the Tata Refractories and will give it access to new markets, the company has said.
Krosaki Harima Corp is a leading global refractories maker and its 42.9 per cent equity is owned by Nippon Steel. The company, listed on the stock exchanges at Tokyo and Fukuoka, had recorded a sales figure of 82,874 million yen as of March 31, 2010.
On the other hand, Tata Refractories is the largest refractories manufacturer in India and meets the requirement of industries like steel, glass, cement, non-ferrous and petro-chemicals. Its facility at Belpahar, Orissa, is considered to be the largest among all single refractory producing units in the world.
Scrips of Tata Steel closed at Rs 589.10 apiece on the Bombay Stock Exchange today, up 1.51 per cent from the previous close.
