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Tata Steel today said it has no immediate plans to sell-off its Long Products Europe business to the Switzerland-based Klesch Group.
The Long Products Europe business manufactures plates, sections, wire rod and semi-finished steel for different markets, including construction, ship-building & engineering, energy and wire drawers.
These products are made at its mills in Teesside and Scunthorpe in the UK.
In a BSE filing, Tata Steel said its European business had signed a Memorandum of Understanding with Klesch Group on October 15, 2014 to undertake a detailed due diligence and negotiations for a potential sale of its Long Products Europe business and associated distribution activities.
"The above process continues," the filing said.
Tata Steel also termed the reports regarding the firm selling its plants in the UK to Klesch Group as "speculative", saying these "does not contain comment by or on behalf of the company."
"In the instant matter, we clarify that currently there has been no event that requires additional disclosure (apart from what has already been disclosed) under Clause 36 of the listing agreement," the firm said in the filing.
Klesch Group is an industrial commodities business with three divisions specialising in the production and trading of chemicals, metals and oil with revenue of USD 4.5 billion across 30 locations in over 17 countries around the world.
The Board and Management of Tata Steel is committed to make disclosures at the appropriate time. The company has robust disclosure principles and follows a policy of not commenting on market speculation.
Tata Steel shares today closed 1.13 per cent up at Rs 368.15 apiece on the BSE.
