Biznextindia : Tata Steel Limited has on April 5, 2022, executed a Share Purchase Agreement with public sector steel major Steel Authority of India Limited (SAIL) for acquisition of the entire equity stake of SAIL (1,85,26,900 equity shares or 50%) held in S&T Mining Company Limited (S&T Mining).
On completion of the acquisition, S&T Mining, which is presently a Joint Venture between SAIL and the Company, will become a wholly owned subsidiary of the Tata Steel.
S&T Mining was incorporated on September 18, 2008 for the purpose of acquiring coal blocks, carrying out exploration, obtaining all government and regulatory approval and licenses, development of mine, extraction and mining of coal from the identified blocks. However, S&T Mining has been nonoperational since FY2018-19.
The acquisition is part of Tata Steel Group portfolio restructuring and simplification strategy. On completion of the said Transaction, the equity stake of the Company in S&T Mining will increase from 50% to 100% and hence, S&T Mining will become a wholly owned subsidiary of the Company post this transaction