Posted on 17 Jul 2018
India-headquartered Tata Steel has responded to reports it is seeking buyers for its NatSteel business in Singapore and Tata Steel Thailand by saying it has “…no firm proposal for consideration.”
According to Indian press reports, the steelmaker has mandated a Singapore-based banker to find buyers for its Southeast Asian units. The report in India’s Economic Times says Tata values the businesses at just $500 million.
Tata Steel tells Kallanish in response to a query that: “In pursuit of its long term strategy to create sustainable value for its shareholders, Tata Steel periodically undertakes strategic assessment and review of its portfolio including overseas business." It adds: "However, as there is no firm proposal for consideration currently, the company has no further comment to make in the matter.”
NatSteel and Tata Steel Thailand have not commented on the matter. The move would potentially be part of Tata Steel’s focus on its Indian and European operations.
In the financial year ending March 2018, Tata Steel Thailand shipped 1.217 million tonnes of steel, down from 1.262mt the previous year. It earned profit after tax of THB 455 million ($13.66m), up from THB 214m a year earlier. NatSteel has a steelmaking capacity of around 2m t/y and mainly supplies rebar.
Tata Steel has recently agreed to merge its European operations with thyssenkrupp Steel Europe in a 50:50 joint venture named thyssenkrupp Tata Steel. In India, meanwhile, Tata Steel recently agreed to buy Bhushan Steel and has plans to increase capacity at its plant in Odisha from 3 million tonnes/year to 8m t/y.
