Tata Steel unit set to buy Usha Martin's wire rope business for Rs 4,525 crore, says report
14 Apr 2019
Published on 14 Apr 2019
- Tata Sponge has paid a designated escrow amount of Rs 3,000 crore towards the deal as the first instalment: report
- A payment of about Rs 700 crore will be held back by the Tatas as an iron ore mine, a coal block and some land will be transferred later: report
Wire rope manufacturer Usha Martin is closing a deal worth Rs 4,525 crore with Tata Sponge, a Tata Steel subsidiary, for selling its steel business, The Times of India reported.
Tata Sponge has paid a designated escrow amount of Rs 3,000 crore towards the deal as the first instalment, a source familiar with the development told the newspaper.
“Tata Steel will take control of the integrated steel plant of Usha Martin near Jamshedpur early morning on April 9,” multiple sources told The Times of India.
A payment of about Rs 700 crore will be held back by the Tatas as an iron ore mine, a coal block and some land will be transferred later, sources said, adding that most of the government approvals are in place for the deal.
Usha Martin, which has a debt of Rs 4,400 crore, in 2018 had allowed the managing director Rajeev Jhawar to dispose of the steel business of the company. The board of the company had earlier tried to sell its wire rope business but was unable to do so following muted response from buyers, the report added.
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