Tata Steel starts UK biz sale; sells long products to Greybull

Tata Steel today kickstarted the sale process for its cash-guzzling UK business with divestment of Long Products Europe business unit to investment firm Greybull Capital for a "nominal" amount.
The embattled steelmaker also appointed KPMG LLC as process advisors as well as Slaughter and May as the legal advisors for "thorough, but expedited sale" of the entire shareholding in its subsidiary Tata Steel UK.
Tata Steel UK today announced "signing of an agreement to sell its Long Products Europe business to family investment office, Greybull Capital.
"Sale for a nominal consideration, would be in exchange for Greybull Capital taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package."

The deal would be completed once a number of outstanding conditions have been resolved, including transfer of contracts, certain government approvals and the satisfactory completion of financing arrangements, it added.
The Long Products Europe business employs 4,800 people -- 4,400 in the UK and 400 in France.
On the sales process, it said following the advice from the Tata Steel Board to evaluate all options for the portfolio review of Tata Steel UK, the Board of Tata Steel Europe at its meeting held on March 31, 2016 reviewed several options.
Keeping in view the interest of all stakeholders, the Board (Tata Steel Europe) has "decided to commence the process of divestment of its entire shareholding in its subsidiary Tata Steel UK.