Usha Martin Announces Sale Of Steel Business To Tata Steel
2018-09-22 Disinvestment Metallurgical Industries Eastern India
Usha Martin Limited (UML) hereby announces that it has executed definitive agreements for sale of its steel business to Tata Steel Limited or its subsidiaries (“TSL”) through a slump sale on a going concern basis for a consideration being in the range of Rs.4300 crores - Rs. 4700 crores. The closing of this sale is subject to fulfilment of various conditions under the agreements, which are primarily regulatory, shareholders and the consent of our lenders. UML and TSL shall jointly work towards fulfilment of various conditions precedent agreed in the definitive agreements and will work expeditiously to complete the closing. All the employees pertaining to steel business will be transferred as part of the divestment and the sale proceeds will be applied first to repay existing lenders of UML. Post divestment of steel division and repayment of exiting lenders, UML will be able to operate a significantly deleveraged wire rope business, in which it is one of the leading global player.