By Santanu Choudhury
NEW DELHI-- Tata Steel Ltd. said Monday that it has agreed on a potential sale of its specialty steel business in the U.K. to Liberty House Group., a U.K.-based industrial group, for an enterprise value of 100 million pounds ($124.77 million).
Tata's British unit signed a letter of intent with Liberty, which covers several of its South Yorkshire-based facilities including the Rotherham electric arc steelworks, a steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centers in the U.K. and China.
Tata's specialty steel business employs about 1,700 people making steel for the aerospace, automotive and oil and gas industries, said the Mumbai-based company, one of the world's largest steel producers.
"The specialty steel business is independent of the pan-European strip products supply chain and today's announcement is in line with the overall restructuring of the U.K. portfolio," said Bimlendra Jha, chief executive of Tata Steel U.K.
The potential sale of the specialty steel business comes amid a leadership battle in the Tata group following the recent ouster of the former chairman Cyrus Mistry. Mr. Mistry had alleged that Tata Steel paid too much when it acquired Anglo-Dutch steelmaker Corus in 2007. Tata Steel has denied the allegations.
Tata Steel had already announced plans to sell its struggling operations in the U.K., citing funding issues and a global glut of steel.
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(END) Dow Jones Newswires
November 28, 201607:34 ET (12:34 GMT)
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