Tata Steel sells Natsteel stake for ~1,275 crore

T S Global Holdings (TSGH) Singapore, a 100 per cent indirect subsidiary of Tata Steel, on Thursday executed definitive agreements with Toptip Holding to divest its entire equity stake in Natsteel Holdings for an equity value of $172 million (~1,275 crore). In 2019, Tata Steel had called off its plans to sell a majority stake in its South East Asia business to Chinese firm HBIS Group.

T S Global Holdings (TSGH) Singapore, a 100 per cent indirect subsidiary of Tata Steel, on Thursday executed definitive agreements with Toptip Holding to divest its entire equity stake in Natsteel Holdings for an equity value of $172 million (~1,275 crore).

Toptip Holding is a Singapore-based steel and iron ore trading company.

Based on the historical performance of the transacted business, the enterprise value to Ebitda works out to be about 13 times, said Tata Steel in its BSE filings.

However, the wires business of Natsteel in Thailand (Siam

Industrial wires) has been retained by Tata

Steel as part of the downstream wires portfolio.

The company said the transaction has been closed and that the consideration received, and will be used for reduction of off-shore debt.

In 2019, Tata Steel had called off its plans to sell a majority stake in its South East Asia business to Chinese firm HBIS Group. It was to sell 70 per cent to HBIS for $327 million in cash. The deal then was for entire South East Asia operations of Tata Steel which is operations in Thailand and Singapore.

Tata Steel had bought Natsteel Singapore in 2004 for about ~1,300 crore.

In the current deal with Toptip Holdings, Tata Steel has exited part of Singapore business, while retaining the Thailand and wire business of Singapore.

IN THE DEAL WITH TOPTIP HOLDINGS, TATA STEEL HAS EXITED PART OF SINGAPORE BUSINESS, WHILE RETAINING THE THAILAND AND WIRE BUSINESS OF SINGAPORE