Tata Steel is trading higher by 3% at Rs 569 after the company sold its entire stake in Australia’s Riversdale Mining to Rio Tinto Group for A$1.06 billion (Rs 5,012 crore).
“The sale consideration represents around 100 per cent appreciation of value in less than four years since Tata Steel’s first investment,” the Tata Group Company said in a filing to the stock exchanges.
“Tata Steel board has considered the recent announcement of Rio Tinto Jersey Holdings 2010 Ltd to de-list Riversdale Mining Ltd following its increased shareholding to 73.20% in Riversdale Mining. Tata Steel has decided that it would not want to hold its equity investment in Riversdale, which is proposed to be de-listed, without any joint venture agreement with the majority shareholder in the unlisted Riversdale Mining Ltd,” it added.
The investment is currently held by Tata Steel Global Minerals Holding Pte, an indirect wholly owned subsidiary of Tata Steel.
The stock opened at Rs 565 and hit a high of Rs 571 on the NSE. Around 500,000 shares have changed hands on the counter on opening deals.