Tata Metaliks Ltd (TML) has scrapped plans to sell its over one lakh tonne pig iron manufacturing facility at Redi in Maharashtra for Rs 180 crore.
The company said that its board of directors would continue to evaluate other strategic options for Redi facility.
In a communication to the stock exchanges, the company said that the Business Transfer Agreement (BTA) signed by Tata Metaliks Ltd and Fomento (Karnataka) Mining Company Pvt Ltd for sale/transfer of Redi Business Unit (pig iron manufacturing facility) in Sindhudurg in Maharashtra for a consideration of Rs 180 crore has been terminated.
The company said that the deal could not be consummated by the long stop date (that is, March 28) due to ‘some irreconcilable issues' and both companies have decided to terminate the transfer agreement by mutual consent on March 30.
Tata Metaliks had announced on September last year that its board had decided to divest its pig iron making facility at Redi in Maharashtra ‘as part of the strategic review of its portfolio'.
The company had acquired it in 2006 through an auction. Though TML said that it took several steps to improve it, the plant's ‘structural competitiveness' was undermined by the increase in global raw material prices in the past five years.
While announcing today the termination of the transfer agreement with Fomento, Tata Metaliks said that its board of directors continued to evaluate other strategic options of Redi Business Unit.