Tata Steel Europe has appointed Bimlendra Jha as Chief Executive Officer of Tata Steel UK which has been put on the block.
As Executive Chairman of Tata Steel Europe's Long Products Europe business, Jha played a crucial role in finding a suitor for the long product division in Europe.
In his new position, Jha will report to Hans Fischer, Chief Executive Officer of Tata Steel Europe, and will be supported by a team of executives drawn across functions including operations, procurement, finance, human resources and commercial, said Tata Steel in a statement on Monday.
Last week, Tata Steel signed an agreement with Greybull Capital to sell its struggling long product division.
Koushik Chatterjee, Group Executive Director, Tata Steel said Jha’s experience in the process of divestment of Long Products division in Europe will be invaluable as Tata Steel Europe explores strategic alternatives for its operations in the UK. Tata Steel Europe has appointed Standard Chartered Bank as an additional adviser to the process to reach potential buyers across the globe. It will work alongside KPMG LLP, whose appointment was announced on April 11.
Over the last seven days, the advisers to Tata Steel Europe have begun initial exploration of interest in Tata Steel’s UK operations reaching out to 190 potential financial and industrial investors worldwide. More detailed information sharing will commence this week as the process moves into the confidential phase, said Tata Steel.
Credit profile Meanwhile, a PTI report said the uncertainty associated with the sale of Tata Steel’s loss-making UK business may delay the company’s expected recovery in credit profile, according to India Ratings & Research (Ind-Ra).
The planned sale of Tata Steel’s long product Europe business to Greybull Capital LLP will help lower cash burn and will be credit positive, Ind-Ra said in a statement.