Tata Steel divests entire stake in a Sri Lankan unit

Tata Steel Ltd, a Tata group company, has sold its entire stake in a Sri Lankan unit, Lanka Special Steels Ltd (LSSL), to E B Creasy & Co. Plc for Rs20.4 crore.

LSSL was a wholly-owned subsidiary of Tata Steel incorporated in Sri Lanka. It is engaged in the business of manufacturing and supplying hot dip galvanized wire and nail wire.

Lanka Special Steel has an installed capacity of 14,400 tonne per annum and reported annual sales of Rs74 crore in financial year 2013-2014, the company said in a statement to BSE.

E B Creasy & Company is into in logistic business, consumer goods manufacturing, automotive business and renewable energy business among others in Sri Lanka.

As of December 2014, promoters held a 31.35-per cent stake in Tata Steel, while institutions and non-institutions owned 42.79 per cent and 24.14 per cent.

Earlier in February, Tata Steel's European subsidiary Tata Steel Europe, entered into an agreement to acquire three strip products service centres from steel producer SSAB in Nordic.

The European Commission has approved the sale of these service centres to Tata Steel Europe, the company said in a stock exchange notification.

Shares in Tata Steel closed up 2.26 per cent at Rs 324 on BSE, which ended up 1.08 per cent on Monday.