Tata Steel Inks Pact To Divest Majority Stake In South East Asia Business
Tata Steel Ltd. said today its wholly owned subsidiary TS Global Holdings has signed definitive agreements with HBIS Group to divest majority stake in its South-East Asia business.
The agreements were signed in Beijing, Tata Steel said in a statement.
“TS Global Holdings Pte Ltd. (an indirect wholly owned subsidiary of Tata Steel Ltd.) has executed definitive agreements with HBIS Group Co Ltd. controlled entity to divest its entire equity stake in NatSteel Holdings Pte Ltd. and Tata Steel (Thailand) Public Company Ltd.,” the company said.
As per the agreement, the divestment will be made to a company, in which 70 percent equity shares will be held by an entity controlled by HBIS and 30 percent will be acquired by TSGH.
TV Narendran, managing director and chief executive officer of Tata Steel, said, “It has been in discussions with HBIS Group over the future of South-East Asia business.”
"The definitive agreement is a significant milestone in our strategic relationship, offering the SEA business robust growth opportunities, given the access to resources, technical expertise and regional understanding of HBIS. Tata Steel remains committed through its shareholding to help create a sustainable future for all stakeholders."
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27.5 million tonnes per annum. It is one of the world’s most geographically-diversified steel producers, with operations and commercial presence across the world.
HBIS Group was established on June 30, 2008, by the merger of Tangshan Iron and Steel Group and Handan Iron and Steel Group of Hebei Province in China, and is among the largest steel makers in the world.
The Chinese firm supplies steel for nuclear power, marine engineering, bridges and construction.