- Tata Steel to acquire Odisha-based SFML’s ferro alloy assets for ₹155cr
Tata Steel is all set to acquire ferro alloys producing assets of Odisha-based Stork Ferro and Mineral Industries for ₹155 crore in an all-cash deal, the company informed on Wednesday. Accordingly, an asset transfer agreement has already been signed between the two companies.
Tata Steel said in its regulatory filing that it “has…executed an Asset Transfer Agreement with Stork Ferro and Mineral Industries Private Limited (SFML) for acquisition of itemized assets to produce ferro alloys. The asset purchase transaction will be carried out for cash consideration of ₹155 crore plus applicable tax. The transaction does not involve any share acquisition.”
The acquisition will be completed within two months from the date of execution of the asset transfer agreement, the company said.
SFML has two 16.5 MVA furnaces with annual production capacity of 53 kilo tonne per annum (KTPA) located at Balasore, Odisha. The acquisition will provide an inorganic growth opportunity for Tata Steel Limited to augment its ferro alloys processing capacities.