Monday, February 14, 2005
Tata Steel acquires NatSteel
PTI
MUMBAI: Tata Iron and Steel Company Ltd (Tisco) has completed the acquisition of Singapore-based steel company NatSteel by subscribing to 100 per cent equity of its subsidiary NatSteel Asia Pte Ltd (NatSteel Asia).
As part of the transaction, all steel assets of NatSteel Ltd in Singapore, Malaysia, Thailand, Vietnam, Phillipines, Australia and China (except Changzhou Wujin NatSteel) have been transferred to NatSteel Asia, TISCO informed The Stock Exchange, Mumbai (BSE) on Wednesday.
Earlier, Tisco had entered into a definitive share subscription agreement to acquire steel business of NatSteel, the company said.
Amongst the China investments, the regulatory approvals for the transfer of Southern NatSteel (Xiamen) and Wuxi Jingyang Metal Products have been received and transferred to NatSteel Asia, it said.
The transfer of Changzhou Wujin NatSteel to NatSteel Asia is delayed as the regulatory approrval is pending with Chinese regualtory authorities, it said.
Consequently, the company has held back $60 million from the purchase consideration for this transaction and it has signed supplemental subscription agreement (SSA) with NatSteel on February 15, it said.
As per SSA signed on August 16, 2004, the negotiated enterprise value was $486.4 million and on completion TISCO was required to pay $364.8 million as initial payment, it said.
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