Tata Steel Divests Subsidiary Stake To Chinese Metal Player
Total consideration for the deal is around 5.5 million euros or Rs 38 crore
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Tata Steel Ltd. divested its entire stake in a wholly-owned indirect subsidiary Kalzip Guangzhou Ltd. to Shanghai Qinheng International Trade Co.
The total consideration for this non-related party transaction, is pegged at 5.5 million euros (Rs 38.09 crore), the company said in an exchange filing. The company had entered into an agreement with the Chinese metal player in November 2016. The sale of the stake was completed on March 29.
Kalzip Guangzhou had assets worth 6.24 million euros as of September 30, 2016.
Tata Steel has been engaged in divesting its non-profitable assets in order to pare its debt. The company had sold its U.K. speciality business to Liberty House group for a sum of 100 million pounds.
As of December 30, 2016, the company's consolidated gross debt stood at Rs 84,752 crore.
The stock rose as much 1.8 percent to Rs 485.9. Tata Steel has outperformed the S&P BSE Sensex Index, gaining 23.32 percent in 2017 as compared to 11.15 percent returns for the benchmark index.