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Tata Steel signs agreement to sell stake in Al Rimal Mining

Kolkata: Tata Steel Limited on Thursday said it had signed definitive agreements with Oman National Investments Development Company (Tanmia) that will effectively reduce its shareholding in Al Rimal Mining LLC, from the present level of 70 to 51%.

Al Rimal Mining LLC, is a step-down subsidiary of Tata Steel Limited and was formed with the objective of limestone mining in Oman, Tata Steel informed the exchanges in a notification. Tata Steel held 70% equity stake in Al Rimal Mining through its wholly owned indirect subsidiary Tata Steel Global Minerals Holdings Pte. Under the agreement Tanmia, a closely held joint stock company incorporated in Oman, will be inducted into Al Rimal Mining as a shareholder.

As part of the development, Tata Steel’s will continue to hold majority shareholding in Al Rimal Mining LLC that will reduce its indirect shareholding from 70% to 51%. The latter is yet to commence mining operations.

Other existing shareholders of Al Rimal Mining LLC will also sell their part stake of 11% to Tanmia, leading to resultant shareholding of 30% for Tanmia in Al Rimal Mining LLC. “The deal is expected to be completed between August 2019 and September 2019,” the statement said, adding that it was “subject to completion of conditions precedent to closing of the transaction.” Tata Steel will receive around Rs 3.5 crore at the rate of (Omani rial) OMR 1 per share for selling off the 19% stake.

“The closing of the transaction is subject to fulfilment of some conditions precedent under the agreements. The parties shall jointly work towards fulfilment of the same,” the statement added.

Tata Steel entered the Oman venture in 2008 in partnership with the country’s Al Bahja group to develop limestone deposits in Salalah province. Limestone a key steel making input and the mine in Oman was slated to meet a considerable portion of the steelmaker’s requirements.



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