TISCO buys out NatSteel

Tata Iron and Steel Company Ltd has completed the acquisition of Singapore-based steel company NatSteel Ltd by subscribing to 100 per cent equity of its subsidiary NatSteel Asia Pte Ltd (NatSteel Asia).

As part of the transaction, all steel assets of NatSteel in Singapore, Malaysia, Thailand, Vietnam, Phillipines, Australia and China (except Changzhou Wujin NatSteel) have been transferred to NatSteel Asia, TISCO informed the Bombay Stock Exchange on Wednesday.

Earlier, TISCO had entered into a definitive share subscription agreement to acquire steel business of NatSteel, the company said.

Amongst the China investments, the regulatory approvals for the transfer of Southern NatSteel (Xiamen) Company and Wuxi Jingyang Metal Products Company have been received and transferred to NatSteel Asia, it said.

The transfer of Changzhou Wujin NatSteel to NatSteel Asia is delayed as the regulatory approrval is pending with Chinese regulatory authorities, it said.

Consequently, the company has held back Singapore $ 60 million from the purchase consideration for this transaction and it has signed supplemental subscription agreement with NatSteel on February 15, it said.

As per SSA signed on August 16, 2004, the negotiated enterprise value was SD 486.4 million and on completion TISCO was required to pay SD 364.8 million as initial payment, it said.