TSL inks pact with Usha Martin to acquire its steel business

Kolkata : Tata Steel Limited (TSL) on Saturday said it has executed definitive agreements for acquisition of the steel business of debt-ridden Usha Martin through a slump sale on a going concern basis for a cash consideration between Rs 4,300-4,700 crore.

"...it has executed definitive agreements for acquisition of the steel business of Usha Martin Limited (UML) through a slump sale on a going concern basis," the steel maker said in a regulatory filing.

The filing further said: "It is proposed that the steel business of UML will be acquired subject to transaction closing, for a cash consideration of between Rs 4,300-4,700 crore (subject to various transaction adjustments)."

The transaction comprises of one mtpa specialised alloy based manufacturing capacity of UML in long products segment based in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants.

The acquisition is expected to be completed in the next 6-9 months.

The steel producer said the closing of the acquisition is subject to fulfilment of various conditions under the agreements.