Tata Steel Limited ('Tata Steel') has executed definitive agreements for acquisition of the steel business of Usha Martin Limited ('UML') through a Slump Sale on a going concern basis. The closing of the acquisition is subject to fulfilment of various conditions under the agreements. At the closing, Tata Steel or any of its subsidiaries or affiliates may carry out this acquisition. The parties shall jointly work towards fulfilment of conditions precedent which are largely regulatory approvals required for the transfer of the business undertaking. All the employees pertaining to the steel business will transfer as part of the acquisition.
The steel business undertaking of UML inter-alia comprises of a specialized ~1.0 mtpa alloy based manufacturing capacity in long products segment based in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants. The acquisition is part of the overall strategy to build capability in long products and expand product offerings including high-value added products.
The transaction will close once various conditions to its closing documented under the Business Transfer Agreement are fulfilled. While Tata Steel is currently the signatory to the Business Transfer Agreement with UML, the agreement permits Tata Steel or any of its subsidiaries or affiliates to carry out this acquisition. The transaction and acquisition structure would be determined shortly.
Shares of TATA STEEL LTD. was last trading in BSE at Rs.624.55 as compared to the previous close of Rs. 620.45. The total number of shares traded during the day was 1518085 in over 26116 trades.
The stock hit an intraday high of Rs. 646.7 and intraday low of 585. The net turnover during the day was Rs. 946790840.