Tata Steel to Acquire 100% equity share of BRPL

Tata Steel to Acquire 100% equity share of BRPL  Tata Steel has announced an agreement on December 23, 2016 to acquire 100 % equity shares of the Brahmani River Pellets Limited (BRPL) from Aryan Mining and Trading Corporation Private Limited (AMTC) and other companies associated with the Moorgate Industries Group (MIG). Tata steel also announced that the funding for acquiring the

complete equity shares in BRPL will be done from Tata Steel’s internal cash flows. Tata Steel have acquired the 100% equity because of the location of the BRPL assets having significant operating synergies especially to make the Kalinganagar plant of Tata Steel, even more competitive for the future.

iv. The deal, which is subject to regulatory approvals, is expected to close in four months. It . also needs approval from RBI and other regulatory bodies to restructure BRPL’s balance sheet, including shareholders loan and advances.

Brahmani River Pellets Ltd (BRPL), which had a turnover of Rs 452 crore in 2015-16, owns a 4 million tons per annum capacity pellet plant in Jajpur and a 4.7 million tons iron ore beneficiation plat in Bardil, Odisha and Jamshedpur steel plant.

vi. The company was originally established by the Moorgate Industries Group (MIG), which continues to hold a significant stake in BRPL through its shareholding in AMTC. MIG was formed on demerger from the Stemcor Group of Companies as part of a UK court-approved restructuring in 2015.

vii. Tata Steel Limited is an Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. It was the 10th largest steel producing company in the world in 2015, with an annual crude steel capacity of 25.3 million tonnes, and the second largest steel company in India with an annual capacity of 9.7 million tonnes after SAIL.