| As
part of the Company’s focus on regional
consolidation, Tata Steel through its wholly-owned
subsidiary NatSteel Asia Pte. Ltd. (NSA), has
entered into an agreement to acquire controlling
equity stake in two rolling mills located in
Haiphong, Vietnam, has entered into a conditional
agreement with Vietnam Industrial Investments
Ltd (VII) to acquire:
- A 100% stake held by
VII in Structure Steel Engineering Pte Ltd
(SSE(S))
- A 70% stake held by VII
in Vinausteel Limited. The remaining 30% share
is held by Vietnam Steel Corporation (VSC)
By virtue of the acquisition
of the respective stakes, NSA will effectively
have acquired two rolling mills located in Haiphong,
North Vietnam:
- A 250k tpy bar/wire rod mill operated by
SSE Steel Ltd (a wholly-owned subsidiary of
SSE(S)).
- A 180k tpy reinforcing bar mill operated
by Vinausteel Ltd.
The enterprise
value for the acquisition is USD41 million,
subject to certain closing adjustments on completion.
The transaction should be completed by June
2007.
SSE Steel has one of the most
modern rolling mills in Vietnam and the Vinausteel
brand is one of the best known brands in Vietnam
for reinforcement bars. The acquisition of these
two mills will allow Tata Steel - NSA Group
to complement, strengthen and expand its current
presence in Vietnam. The Group presently operates
a 100 k tonnes per year reinforcing bar/wire
rod mill in a joint venture with VSC in Thai
Nguyen which is located about 70km north of
Hanoi. The stake in these companies is to be
acquired from Vietnam Industrial Investments
Ltd., an investment holding company listed on
the Australian Stock Exchange.
Mr Oo Soon Hee, President and
CEO of NSA, said: “The Vietnamese steel
market has been growing at a healthy rate over
the past five years. NSA believes the market
for steel products in Vietnam will continue
to grow at a strong pace as consumption of steel
products in Vietnam on a per capita basis is
relatively low. We are glad to have this opportunity
to work closely with VSC to enhance our strategic
presence in Vietnam.” |
