Tata Steel's Consideration on Delisting Riversdale Mining

As part of the ongoing review of the strategic investments of Tata Steel, it considered the announcement of Rio Tinto Jersey Holdings 2010 Limited to delist Riversdale Mining. It followed its increased shareholding to 73.20 per cent in Riversdale Mining.

The sale consideration of about Australian $1.06 billion (about Rs.5,100 crore) represents around 100 per cent appreciation of value in less than four years since the company’s first investment. The investment was held by Tata Steel Global Minerals Holding Pte Limited (an indirect wholly-owned subsidiary of Tata Steel) till the decision of delisting.

After the consideration of delisting, Tata Steel decided to continue focusing on its current holding of 35 per cent in Riversdale Energy (Mauritius) Limited, a subsidiary of Riversdale Mining), which owns coal assets in Mozambique. It decided to continue in the joint venture with Riversdale Mining in Mozambique.

Tata Steel planned further to work with Rio Tinto and discuss in good faith ways to enhance its participation in the Benga joint venture based on the framework captured in the joint venture agreement between Tata Steel and Riversdale Mining.