As a part of the ongoing review of the strategic investments of the company, Tata Steel Limited Board have considered the recent announcement of Rio Tinto Jersey Holdings 2010 Limited to de-list Riversdale Mining Limited following its increased shareholding to 73.20% in Riversdale Mining Limited.
Tata Steel announced it has decided against holding its equity investment in Riversdale Mining Limited which is proposed to be delisted, without any joint venture agreement with the majority shareholder in unlisted Riversdale Mining Limited.
The board of Tata Steel Limited decided to divest its entire 26.27% stake in Riversdale Mining Limited to Rio Tinto in its current takeover offer for Riverdale Mining Limited, following which the company has initiated steps to undertake the transaction.
The sale consideration of approximately A$ 1,060 Million represents around 100% appreciation of value in less than four years since the first investment. The investment is currently held by Tata Steel Global Minerals Holding Pte Limited an indirect wholly owned subsidiary of Tata Steel Limited.
Tata Steel will continue focusing on its current holding of 35% in Riversdale Energy (Mauritius) Limited, a subsidiary of Riversdale Mining Limited, which owns coal assets in Mozambique.
Tata Steel Group is among the top ten global steel companies with an annual crude steel capacity of over 27 million tons per annum (mtpa). It is now one of the world’s most geographically diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries.
The Tata Steel Group, with a turnover of US$26.64 billion in FY ‘11, has over 81,000 employees across five continents and is a Fortune 500 company. The Group’s vision is to be the world’s steel industry benchmark in “Value Creation” and “Corporate Citizenship” through the excellence of its people, its innovative approach and overall conduct.
It is the largest employer in India in the Private Sector and continues to lead with the same commitment towards social and community responsibilities that it has shown in the past.
Other Group Companies in the different sectors are – Tata Motors, Tata Consultancy Services (TCS), Tata Communications, Tata Power, Indian Hotels, Tata Global Beverages and Tata Chemicals.
Tata Motors is India’s largest automobile company by revenue and is among the top five commercial vehicle manufacturers in the world. Jaguar and Landrover are now part of Tata Motor’s portfolio.
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