To facilitate induction of Tanmia, another Omani firm
MUSCAT: Tata Steel is diluting its holding in the Oman-based Al Rimal Mining, held through its wholly owned subsidiary, Tata Steel Global Minerals Holdings (TSGMH), from the present 70 per cent to 51 per cent, according to a statement issued by the company.
Definitive agreements to that end have already been signed between the parties. The partial divestment by Tata Steel is to facilitate the induction of a new Omani company, Oman National Investments Development Company (TANMIA) as a shareholder into Al Rimal Mining, which was incorporated with the sole objective of limestone mining in Oman.
As a result, the indirect equity stake of Tata Steel Ltd in Al Rimal Mining LLC will reduce by 19 percentage points. The other existing shareholders of Al Rimal Mining have also decided to sell their 11 per cent holding to TANMIA, taking the new shareholder’s ownership in Al Rimal Mining to 30 per cent.
Al Rimal Mining, which was formed with the objective of limestone mining in Oman, has not yet commenced operations. As on March 31, 2018, the net worth of the company was OR 364,000 (i.e. approximately Rs6.60 crore).
According to the stock market filing, Tata Steel has received a consideration of OR1 per share against the sale, which would take the size of the deal to OR1,90,000 or Rs3.5 crore. ($2.6 is OR1)