TATA Steel to acquire 50% stake of SAIL in S-;T Mining; Stock dips ~1%

7 Apr 2022 , 10:52 AM

Tata Steel Limited has, on April 5, 2022, executed a Share Purchase Agreement with Steel Authority of India Limited (SAIL) for acquisition of the entire equity stake of SAIL (50%) held in S&T Mining Company Limited (S&T Mining).

On completion of the acquisition, S&T Mining (presently a Joint Venture between SAIL and the Company), will become a wholly owned subsidiary of the Company.

S&T Mining is a 50:50 joint venture company between Tata Steel and SAIL. S&T Mining was incorporated on September 18, 2008 for the purpose of acquiring coal blocks, carrying out exploration, obtaining all government and regulatory approval and licenses, development of mine, extraction and mining of coal from the identified blocks. However, S&T Mining has been nonoperational since FY2018-19.

At around 10.55 am, Tata Steel Ltd was trading at Rs1,358.15 per piece down by Rs12.85 or 0.94% from its previous closing of Rs1,371 per piece on the BSE.

“The acquisition is part of Tata Steel Group portfolio restructuring and simplification strategy. On completion of the said Transaction, the equity stake of the Company in S&T Mining will increase from 50% to 100% and hence, S&T Mining will become a wholly owned subsidiary of the Company post this transaction.