Tata Steel shares down 4% as co starts sale of UK biz

Mumbai:Shares of Tata Steel fell by almost 4 percent, a day after the company kickstarted the sale of its cash-guzzling UK arm with divestment of Long Products Europe business to investment firm Greybull Capital for a nominal amount of 1 pound.

After a weak opening, the stock further lost 3.89 percent to Rs 318.25 on BSE.

At NSE, it went down by 3.97 percent to Rs 318.

The transaction is likely to conclude by June this year.

The embattled steelmaker appointed KPMG LLC as process advisor for the "thorough, but expedited sale" of its entire shareholding in its subsidiary Tata Steel UK, which includes Britain's largest steel plant at Port Talbot.

Tata Steel UK yesterday announced "signing of an agreement to sell its Long Products Europe business to family investment office, Greybull Capital.

"Sale for a nominal consideration, would be in exchange for Greybull Capital taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package."

Last month, Tata Steel put its entire UK business on the block, a development that has put thousands of jobs at risk amid a deepening crisis in the steel sector.