Tata Steel subsidiary T S Global Holdings (TSGH) entered an agreement with a HBIS Group Co-controlled entity to divest its entire equity stake in NatSteel Holdings and 67.9% of Tata Steel (Thailand), according to a statement filed to the Bombay Stock Exchange on Monday January 28.
HBIS will control 70% of the entity while 30% will be controlled by TSGH. The sale is expected to be completed in the next three to four months subject to regulatory approvals.
Tata Steel chief executive and managing director Thachat Viswanath Narendran said the agreement offered the Southeast Asia business robust growth opportunities, given the access to resources, technical expertise and regional understanding of HBIS.
The Asia steel markets had been rife with market chatter of Tata Steel attempting to offload its Southeast Asian operations in the past year, although company executives did not confirm details with Fastmarkets MB.
“HBIS is keen to expand their operations in Asia, so they have bought over Tata Steel’s operations. It will also help in their sales and trading activities in the region,” an industry source in Singapore told Fastmarkets MB.
Market sources are keen to see how the purchase will affect the Asian steel markets.
“No one knows how HBIS will conduct its business after the takeover, although things should get interesting,” a long steel seller in Singapore said.
But the Asia steel markets may not face a big impact initially, market sources said.
“Things will go on as usual for now, because this is just a change of ownership,” a rebar trader in Asia said.
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