Tata inks pact with HBIS Group, divests stake in steel biz for $327 million

The move will help management focus better on India expansion plans, say analysts

To stay focused on the growing domestic steel market, Tata Steel on Monday announced it has signed a definitive agreement with China’s 

HBIS Group to sell 70 per cent stake in its Southeast Asia operations for a cash consideration of $327 million.

According to the agreement, the divestment will be made to a company in which 70 per cent equity shares will be held by an entity controlled by HBIS and 30 per cent by T S Global Holdings Pte Ltd, an arm of Tata Steel.

The two divested assets are Singapore-based NatSteel Holdings Pte Ltd, and Tata Steel (Thailand). This deal also