Comments
Tata Sponge Iron Ltd , a subsidiary of Tata Steel , is likely to take over the operations of Usha Martin's (UML) steel unit in Jamshedpur on Tuesday, sources said.
Tata Steel had entered into an agreement with Usha Martin in September 2018 for acquiring it's one million tonne integrated steel plant in Jamshedpur for an estimated value of around Rs 4200-4600 crore. The deal was expected to be closed within six to nine months.
Read:Usha Martin co-founder’s ouster may delay steel unit sale to Tatas
Calls and messages sent to Usha Martin’s Managing Director (MD) Rajeev Jhawar seeking confirmation did not elicit response.
The money from the deal will be kept in an escrow account of State Bank of India (SBI) and will be utilised to repay UMLs debt, sources said.
A Tata Steel official said the takeover is likely to happen this week without elaborating further.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.