JOIN USTata Steel to invest Rs 875 cr
Tata Steel has decided to invest 175 million Canadian dollars (nearly Rs 875 crore) in Tata Steel Minerals Canada with the government of Quebec’s investment entities.
“Tata Steel Minerals Canada together with its parent companies signed definitive agreements for concluding investments of 125 million Canadian dollars as equity and 50 million Canadian dollars as debt with the government of Quebec’s investment entities, Resources Quebec (RQ) and Investment Quebec (IQ), respectively, totalling 175 million Canadian dollars,” Tata Steel said in a release.
“The investment will result in an 18% equity stake for RQ in Tata Steel Minerals Canada in line with the carrying value of the investment in Canadian iron ore assets for Tata Steel. Consequently, the shareholdings of Tata Steel and New Millenium Iron will be adjusted to 77.68% and 4.32%, respectively,” Tata Steel added.
“We are pleased to welcome the government of Quebec as a strategic equity partner to Tata Steel in this venture, particularly in these uncertain and challenging times for the global iron ore industry,” Tata Steel group executive director (finance and corporate) Koushik Chatterjee said.
“We are confident that the Quebec government’s investment will facilitate the implementation of Tata Steel Mineral Canada’s future plans of ramping up production, improving cost competitiveness and the development of the mineral deposits in Quebec,” Chatterjee added.