Tata Metaliks terminates pact to sell Redi unit to Fomento

NEW DELHI: Tata Metaliks on Wednesday said it has terminated the agreement signed with Fomento (Karnataka) Mining Company to sell the Redi business unit in Maharashtra "due to some irreconcilable issues".

In a filing to the BSE, Tata Metaliks said the agreement for sale of the unit "could not be consummated by the long stop date (March 28, 2012) due to some irreconcilable issues".

The two firms had signed the agreement on September 28, 2011, it said, adding," both parties have decided to terminate the business transfer agreement by mutual consent on March 30, 2012". However, Tata Metaliks said the company would continue to "evaluate other strategic options of Redi business unit".

Shares of the company today closed down 0.65 per cent at Rs 68.65 apiece at the BSE.