NEW DELHI: Tatas have fully exited from Singapore-based NatSteel Holdings after it sold 100% stake in the company to TopTip Holding for Rs 1,275 crore. Tata Steel on Thursday informed the stock exchanges that TS Global Holdings Singapore, a 100% indirect subsidiary of Tata Steel Limited, executed definitive agreements with TopTip Holding, a Singapore-based steel and iron ore trading company, to divest its 100% equity stake in NatSteel Holdings for an equity value of $172 million (Rs 1,275 crore).
Based on the historical performance of the transacted business, the Enterprise Value to EBITDA works out to be about 13 times, says Tata Steel in a statement. The sale proceeds would be used for reduction of the company’s offshore debt.
The sale of NatSteel is said to be part of Tata Steel’s portfolio restructuring exercise. It also underlines the fact that the company now wants to focus on the India business. The wires business of NatSteel in Thailand (Siam Industrial Wires) has been retained by Tata Steel as part of the downstream wires portfolio
NatSteel’s posted revenue of Rs 2,852 crore (excluding that of Siam Industrial Wires) in 2020-21 and its net worth at the end of March 2021 was negative Rs 32 crore.