Tata Steel has taken control of the integrated steel plant of Usha Martin near Jamshedpur.
April 9, 2019
Wire rope manufacturer Usha Martin is closing a deal worth INR 4525 cr. with Tata Sponge, a Tata Steel subsidiary, for selling its steel business.
As reported in a leading daily, Tata Sponge has paid a designated escrow amount of INR 3000 cr. towards the deal as the first installment. A payment of about INR 700 cr. will be held back by the Tata as an iron ore mine, a coal block and some land will be transferred later, adding that most of the government approvals are in place for the deal.
Usha Martin, which has a debt of INR 4400 cr., in 2018 had allowed the Managing Director Rajeev Jhawar to dispose of the steel business of the company. The board of the company had earlier tried to sell its wire rope business but was unable to do so following muted response from buyers, the report added.
