Team News Riveting
Mumbai, September 30
T S Global Holdings (TSGH) Singapore, a 100 per cent indirect subsidiary of Tata Steel Limited, today executed definitive agreements with TopTip Holding Pte Ltd. (TopTip), a Singapore based steel and iron ore trading company, to divest its 100 per cent equity stake in NatSteel Holdings Pte. Ltd. (NSH) for an Equity Value of USD 172 million (Rs 1,275 crore).
Toptip, established in 2008, is a member of Singapore’s GTP programme with an annual turnover of over US$1 billion and has strong relations with Chinese steel mills.
Based on the historical performance of the transacted business, the Enterprise Value to EBITDA works out to be about 13 times. The wires business of NatSteel in Thailand (Siam Industrial wires) has been retained by Tata Steel as part of the downstream wires portfolio. The transaction has been closed today, the consideration received, and will be used for reduction of off-shore debt.
Tata Steel group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world’s most geographically diversified steel producers, with operations and commercial presence across the world. The group recorded a consolidated turnover of US $21.06 billion in the financial year ending March 31, 2021.
