Tata Steel Ltd. has entered into exclusive talks with the Liberty House Group for the potential sale of its U.K. speciality steels business.
Tata Steel is seeking an enterprise valuation of £100 million for the unit, the company said in a press release. The letter of intent signed with Liberty House covers several South-Yorkshire based assets including the Rotherham electric arc steelworks, the steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, U.K., and in Suzhou and Xi'an, China.
The negotiations are in line with the overall restructuring strategy of the U.K. portfolio, Bimlendra Jha, the chief executive officer of Tata Steel U.K. said in the press release.
This is an important step forward in seeking a future for Speciality Steels and we have reached this stage thanks to the efforts of employees, trade unions and management. We now look forward to working with Liberty on the due diligence and other work streams so that the sale can be successfully concluded.Bimlendra Jha, Chief Executive Officer, Tata Steel U.K.
The company continues to actively seek solutions to structural challenges including the need to “develop a more sustainable business in the U.K. as well as a self-sustaining future for the British Steel Pension Scheme,” Jha added.
Tata Steel U.K. has invested £1.5 billion capital over the last nine years, and is pursuing capital investments worth £85 million in the current financial year.
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