TATA Steel said that it has offloaded 51% stake in group company TATA Refractories Limited to Nippon Steel's associate Krosaki Harima Corporation and inducted the Japanese firm as a strategic partner.
The deal is valued at INR 576.3 crore, going by the TRL's valuation at INR 1,130 crore.
TATA Steel said in a filing to the Bombay Stock Exchange that "The company has completed the transaction and received the relevant consideration for the transfer of 51% equity shares of TRL out of its current stake of 77.46% stake in TRL to Krosaki Harima Corporation of Japan at an equity valuation of INR 1,130 crore."
Earlier on April 21st 2011, the leading steel maker had announced that it had entered into definite agreement with the Japanese firm for the deal. TATA Steel would continue to hold 26.46% stake in the TRL, the largest domestic refractories manufacturer.
Krosaki Harima Corporation is a leading global refractories maker and its 42.9% equity is owned by Nippon Steel. The company, listed on the stock exchanges at Tokyo and Fukuoka had a sales of JPY 82,874 million as on March 31st 2010.
On the other hand, TATA Refractories is the largest refractories manufacturer in India and meets the requirement of industries like steel, glass, cement, non ferrous and petro chemicals. Its refractories works at Belpahar in Orissa is considered to be the largest among all single refractory producing units in the world. According to industry estimates, TRL has an annual production capacity of 340,000 tonnes. The company also has a manufacturing unit in China.