Tata Steel gains on talks to sell UK-based unit to Greybull Capital

Tata Steel rose 2.55% to Rs 263.75 at 9:19 IST on BSE after the company said that an indirect subsidiary of Tata Steel Europe announced the signing of a letter of intent with Greybull Capital for potential sale of its long products Europe business.

The announcement was made after market hours yesterday, 22 December 2015.

Meanwhile, the S&P BSE Sensex was up 186.07 points or 0.73% at 25,776.72.

On BSE, so far 1.07 lakh shares were traded in the counter as against average daily volume of 11.26 lakh shares in the past two weeks.

The stock hit a high of Rs 265.10 and a low of Rs 262 so far during the day.

Tata Steel UK (TSUK), an indirect subsidiary company of Tata Steel Europe (TSE), announced the signing of a Letter of Intent with Greybull Capital to start exclusive negotiations for the potential sale of its long products Europe business. The memorandum covers several UK-based assets including TSUK's Scunthorpe steelworks, mills in Teesside and northern France, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities. It also includes Scottish mills in Dalzell and Clydebridge which are currently being mothballed.

Tata Steel's consolidated net profit rose 21.87% to Rs 1528.71 crore on 18.1% fall in net sales to Rs 29068.54 crore in Q2 September 2015 over Q2 September 2014.

Tata Steel is Europe's second largest steel producer. The combined Tata Steel group is largest steel producer in the world.

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