Tata Steel has decided to divest its entire 26.27 per cent stake in Riversdale Mining. It said that it would not want to hold its equity investment in the venture which is proposed to be delisted.
A Tata Steel release said that as part of the ongoing review of the strategic investments of the company, the board has considered the recent announcement of Rio Tinto Jersey Holdings 2010 Limited to delist Riversdale Mining following its increased shareholding to 73.20 per cent in Riversdale Mining. The sale consideration of about Australian $1.06 billion (about Rs.5,100 crore) represents around 100 per cent appreciation of value in less than four years since the first investment. The investment is currently held by Tata Steel Global Minerals Holding Pte Limited, an indirect wholly-owned subsidiary of Tata Steel.
Tata Steel continues to focus on its current holding of 35 per cent in Riversdale Energy (Mauritius) Limited, a subsidiary of Riversdale Mining, which owns coal assets in Mozambique. It will continue in the joint venture with Riversdale Mining in Mozambique. Tata Steel would look forward to work with Rio Tinto and discuss in good faith ways to enhance its participation in the Benga joint venture based on the framework captured in the joint venture agreement between Tata Steel and Riversdale Mining.
