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Tata Steel to divest majority stake in Southeast Asia biz to China's HBIS

The divestment will be made to a company, in which 70 per cent equity shares will be held by an entity controlled by HBIS and 30 per cent will be acquired by TSGH

Press Trust of India  |  New Delhi 

tata steel
A general view shows the Tata Steel works in Scunthorpe, northern England | Photo: Reuters

Monday said its wholly owned subsidiary T S Global Holdings has signed definitive agreements with to divest majority stake in its South-business.

The agreements were signed in Beijing, China, said in a statement.

"(TSGH) (an indirect wholly owned subsidiary of Ltd) has executed definitive agreements with Co Ltd (HBIS) controlled entity to divest its entire equity stake in (NSH) and (TSTH)," the company said.

According to the agreement, the will be made to a company, in which 70 per cent equity shares will be held by an entity controlled by HBIS and 30 per cent will be acquired by TSGH.

T V Narendran, CEO and Managing Director, Tata Steel said, it has been in discussions with over the future of South-(SEA) business.

"The definitive agreement is a significant milestone in our strategic relationship, offering the SEA business robust growth opportunities, given the access to resources, technical expertise and regional understanding of HBIS. Tata Steel remains committed through its shareholding to help create a sustainable future for all stakeholders," he said.

is among the top global steel with an of 27.5 million tonnes per annum (MTPA). It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world.

HBIS Group was established on June 30, 2008, by the merger of and Steel Group and Handan Iron and Steel Group of in It is amongst the largest steelmakers in the world.

The Chinese firm is into the home appliance, automotive steel, and for nuclear power, marine engineering, bridges and construction.

First Published: Mon, January 28 2019. 13:22 IST
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