5.6 C
London
Monday, March 25, 2024
HomeBusinessIndia BusinessDue diligence for Netherlands business sale to complete in next 2 mths:...

Due diligence for Netherlands business sale to complete in next 2 mths: Tata Steel CFO

Date:

Related stories

Police step in as Indian brothers transform car into ‘helicopter’

INDIAN police seized a DIY car project from two...

Modi’s party acting out of panic, says India’s opposition

VARIOUS constituents of the INDIA bloc condemned Delhi chief...

India’s super-rich control 40 per cent wealth: Study

Inequality in India has skyrocketed since the early 2000s...

India finds involvement of rogue officials in Pannun assassination plot

AN Indian investigation has found that rogue officials, not...

Delhi chief minister’s arrest sparks nationwide protests

DOZENS of Aam Aadmi Party (AAP) members were apprehended...

The due diligence process for the sale of Tata Steel’s Netherlands operations will complete in the next two months, its Executive Director and CFO Koushik Chatterjee said on Tuesday.

In Europe, Tata Steel is in talks with Swedish steelmaker SSAB on the potential sale of its Netherlands business, including Ijmuiden steelworks.
The company has also initiated the process to separate Tata Steel Netherlands and Tata Steel UK and will pursue separate strategic paths for both the businesses in the future.
The due diligence process for the sale of the Netherlands operations has already begun. In COVID situation, it will be a bit slow but the company is geared up. Tata Steel is working with all stakeholders in the Netherlands, the supervisory board, the Board of Management etc, Chatterjee said.
“In two months time, we will complete the due diligence and be able to get into a stage where…we will be looking at the whole binding, structure of the offer, the valuations and everything else. As we complete with due diligence, then the process of getting the final commercials as well as the negotiations on the documentation etc will also happen. So, that’s broadly the timeline,” he said.
Last week, the company said it has initiated discussions with SSAB on the potential sale of Tata Steel Netherlands business, including Ijmuiden steelworks.
The company had said that the downturn in steel demand due to the COVID-19 pandemic is expected to adversely impact the future business outlook of Tata Steel UK Limited (TSUK), a subsidiary of the company held through Tata Steel Europe Limited (TSE), with respect to its ability to continue as a going concern and meet its liquidity requirements.
“TSE, including TSUK, continues to implement various measures aimed at conserving cash, including but not limited to deferral of capital expenditures, cost reductions, use of non-recourse securitisation programmes, seeking Government-backed funding etc,” it had said.     Tata Steel on Friday reported about 50 per cent decline in consolidated net profit to Rs 1,665.07 crore for the September 2020 quarter.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories