Tata Steel to acquire Odisha based SFML's for Rs 155 cr

Steel major Tata Steel said it will acquire ferro alloys producing assets of Odisha-based Stork Ferro and Mineral Industries for Rs 155 crore in an all-cash deal.

In this regard, an Asset Transfer Agreement has been signed between the two companies on a regulatory filing said.

Tata Steel, in the filing said that it ''has...executed an Asset Transfer Agreement with Stork Ferro and Mineral Industries Private Limited (SFML) for acquisition of itemized assets to produce ferro alloys. The asset purchase transaction will be carried out for cash consideration of Rs 155 crore plus applicable tax. The transaction does not involve any share acquisition.'' The acquisition will be completed within two months from the date of execution of the asset transfer agreement, the company said.

SFML has two 16.5 MVA furnaces with annual production capacity of 53 kilo tonne per annum (KTPA) located at Balasore, Odisha. The acquisition will provide an inorganic growth opportunity for Tata Steel Limited to augment its ferro alloys processing capacities.