Usha Martin completes sale of steel business to Tata Sponge Iron

Usha Martin has completed the sale of its steel business to Tata Sponge Iron (except for transfer of an operative iron ore mine, coal mine under development and some of the assets which would be transferred subsequently subject to fulfilment of certain conditions precedent contained in the business transfer agreement and supplemental business transfer agreement dated 07 April 2019.

Sale consideration for steel business Rs. 4525 crore reduced by estimated Net Working Capital on the closing date (9 April 2019) and certain holdback amounts for the assets not transferred was discharged by TSIL in an Escrow account maintained with State Bank of India.

Since TSIL is not a part of the Company's promoter and promoter group and therefore, such transfer is not a related party transaction.

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