In a major breakthrough, Tata Steel has inked an agreement with Liberty House to negotiate on sale of UK Speciality Steel business for Rs 854 crore, a report said. According to a report, a Letter of Intent signed for potential sale of Tata Steel UK’s speciality steels business. It has been learnt that the LOI covers several south Yorkshire based assets. Earlier, Cyrus Mistry, who was unceremoniously removed as Tata Sons chairman on October 24, the board of directors of Tata Steel replaced him as its chairman and appointed former State Bank of India chairman OP Bhatt, who is an independent director on the company’s board, as its interim chairman. The company had also said it has convened an extraordinary general meeting (EGM) on December 21 to remove Mistry and Nusli Wadia, who is an independent director, from the company’s board. While Tata Steel termed Mistry’s removal as chairman and Bhatt replacing him “keeping in mind principles of good corporate governance and to provide impartial leadership to the company in its preparation and conduct of the EGM”, sources close to Mistry termed the move as yet another instance of “unprecedented erosion of core Tata values”.
Tata Sons holds 29.75% stake in Tata Steel.
The shockwaves over Tata Group’s decision to oust its chairman Cyrus Mistry were felt strongly in UK with the British media speculating that it may be “good news” for the company’s UK operations due to interim chairman Ratan Tata’s affinity towards the business. Media reports, almost overwhelmingly, expressed concerns over the future of thousands of steelworkers employed by Tata Steel at its plants in the UK. In fact, one report stressed that the decisiveness over Mistry’s removal should have been reflected in the Tata Group’s plans for its UK steel units, which it had announced it would be shedding in March this year.