Nippon Steel's associate Krosaki Harima Corporation (KHC), a leading global refractory maker, has completed the acquisition of 51% stake in Tata Steel's group company Tata Refractories(TRL) for Rs 576.3 crore. With this sake sale, Tata Steel's holding in TRL would fall to 26.46%.
The company has also inducted the Japanese firm as a strategic partner in the largest domestic refractory manufacturer. Tata Steel shares closed at Rs 589.10 a piece on the BSE today, up 1.51% from the previous close.
“The company has completed the transaction and received the relevant consideration for the transfer of 51% equity shares of TRL out of its current stake of 77.46% stake in TRL to Krosaki Harima Corporation of Japan at an equity valuation of Rs 1,130 crore,” said the company in a statement to the Bombay Stock Exchange (BSE) on Tuesday.
In April, Tata Steel and Nippon had entered into a definitive agreement to conclude the stake sale. With this deal, TRL will get access to KHC's latest technology and also help the company to diversify its products. TRL will also get easy access to markets outside India.
Source: Times of India