In a possible tweak to its strategy, Tata Steel may retain up to 30 percent of its shareholding in its South East Asian units, which had been put on the block.
Sources told Moneycontrol that the slight tweak means that Tata Steel is now looking for a partner and not a downright buyer.
The units include the Singapore-based NatSteel Holdings and Tata Steel (Thailand).
Earlier this week, media reports said the steel major was in talks with China's Hesteel Group. The Chinese company is the second largest steelmaker in the country.
In response to a query on the development, Tata Steel said: “In pursuit of its long-term strategy to create sustainable value for its shareholders, Tata Steel periodically undertakes strategic assessment and review of its portfolio including overseas business.
"Tata Steel will continue to consider all strategic decisions including portfolio restructuring options in a responsible manner taking into account the interests of stakeholders including employees. However, as there is no firm proposal for consideration currently, the company has no further comment to make in this matter.”
The stake sale is part of Tata Steel's strategy under CEO and Managing Director TV Narendran to refocus its energy and resources into India. Even as it looks to dilute stake in its South East Asian units, Tata Steel has forged a joint venture with thyssenkrupp for its European operations.
Now it wants to possibly follow the JV model in South East Asia too.
Source:https://www.moneycontrol.com/news/business/change-in-plans-tata-steel-may-retain-up-to-30-stake-in-south-east-asian-units-3373131.htmlIf you need more information about the Stock Market:
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