Tata Steel to sell stake in Oman mining subsidiary
India’s largest steelmaker Tata Steel Ltd announced that it has signed an agreement to induct Oman National Investments Development Co (Tanmia) as shareholder in its sultanate-based limestone mining subsidiary Al Rimal Mining LLC. The company, however, did not disclose the financial details of the transaction.
‘Tata Steel hereby announces that definitive agreements have been signed to induct Tanmia as a shareholder in Al Rimal Mining LLC, which is a step-down subsidiary of Tata Steel Limited and was formed with the objective of limestone mining in Oman’, Tata Steel said in a statement on its website.
Tata Group had bought a 70 per cent stake in Al Rimal Mining in 2008. As a result, the indirect shareholding of Tata Steel Limited in Al Rimal Mining LLC will reduce from 70 per cent to 51 per cent.
Besides Tata, other shareholders of Al Rimal Mining LLC will also sell their stake to Tanmia, leading to resultant shareholding of 30 per cent for Tanmia in Al Rimal Mining LLC.
The closing of the transaction is subject to fulfillment of some conditions precedent under the agreements. The parties shall jointly work towards fulfillment of the same, Tata Steel said.