Tata Steel sells 51% in TRL to Japanese co; stock up

NEW DELHI: Tata Steel on Tuesday said it has offloaded 51% stake in group company Tata Refractories to Nippon Steel's associate Krosaki Harima Corporation (KHC) and inducted the Japanese firm as a strategic partner.

At 10:00 am, shares of Tata Steel were trading 0.79 per cent up at Rs 593.75 on the Bombay Stock Exchange.

The deal is valued at 576.3 crore, going by Tata Refractories' (TRL) valuation at 1,130 crore.

"... 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 1,130 crore," Tata Steel said in a filing to the Bombay Stock Exchange.

Earlier, on April 21, the leading steelmaker had announced that it had entered into a definite agreement with the Japanese firm for the deal. Tata Steel would continue to hold 26.46% stake in TRL.

Tata Steel Managing Director Hemant Nerurkar had last month said that the partnership will propel the business to greater heights in future.

Bringing in KHC as a strategic partner will bring technical expertise into the Tata Refractories and would give it access to new markets.