T S Global Holdings (TSGH) Singapore, a 100% indirect subsidiary of Tata Steel Limited, executed definitive agreements with TopTip Holding Pte Ltd. (TopTip), a Singapore based steel and iron ore trading company, to divest its 100% equity stake in NatSteel Holdings Pte. Ltd. (NSH) for an Equity Value of USD 172 million (Rs 1,275 crores).
According to the exchange filing, “This is to inform you that T S Global Holdings Pte. Ltd. (TSGH), an indirect wholly owned subsidiary of Tata Steel Limited, has executed definitive agreements with Toptip Holding Pte Ltd. to divest its entire equity stake held in NatSteel Holdings Pte. Ltd. (NSH).”
Based on the historical performance of the transacted business, the Enterprise Value to EBITDA works out to be about 13 times. The wires business of NatSteel in Thailand (Siam Industrial wires) has been retained by Tata Steel as part of the downstream wires portfolio. The transaction has been closed today, the consideration received, and will be used for reduction of off-shore debt, the statement said.
Toptip is a Singapore-based company engaged in the trading of iron ore and steel and steel products. Established in 2008, Toptip is a member of Singapore’s GTP programme with an annual turnover of over US$1 billion and has strong relations with Chinese steel mills, the statement added.
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