Tata Steel said on Thursday that definitive agreements had been signed to induct Oman National Investments Development Company (TANMIA) as a shareholder in Al Rimal Mining LLC, an indirect subsidiary of the company.
Al Rimal Mining LLC was set up with the objective of limestone mining in Oman. Tata Steel through its wholly owned indirect subsidiary, Tata Steel Global Minerals Holdings Pte, held a 70 per cent equity stake in Al Rimal Mining LLC.
As a result of the agreement, the indirect equity stake of Tata Steel in Al Rimal Mining will fall from 70 per cent to 51 per cent. The other existing shareholders of Al Rimal Mining LLC will also sell their partial stake of 11 per cent to TANMIA, leading to resultant shareholding of 30 per cent for TANMIA in Al Rimal Mining LLC. TANMIA is a closely held joint stock company.
Al Rimal Mining is yet to commence operations. As on March 31, 2018, the networth of the company was Rs 6.60 crore. The consideration received for the 19 per cent stake sale was Rs 3.50 crore. The transaction is expected to be completed between August 2019 and September 2019 subject to completion of conditions precedent to closing of the transaction.