Tata Steel to acquire Brahmani River Pellets for Rs 900 crore

Tata Steel on Friday said that, it has executed definitive agreements to acquire 100% equity shares of Brahmani River Pellets Limited (BRPL).

The company will purchase BRPL from Aryan Mining and Trading Corp and companies in the Moorgate Industries Group at an enterprise value of Rs 900 crore plus closing adjustments.

It said, "The acquisition provides an upstream integration opportunity to Tata Steel to meet its metallic requirements and improving feed mix for its Kalinganagar steel plant and Jamshedpur steel plant."

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Indicative time period for the completion of the transaction is expected to be about 4 months.

BRPL owns following assets, 4 mtps pellet plant and 4.7 mtpa iron ore beneficiation plant in Odisha along with 220 KM slurry pipeline connecting pellet plant. In FY16, the company's revenue stood at Rs 452 crore.

Shares of Tata Steel were trading at Rs 392 pershare, down by 0.40 points or 0.10% at 1.59 pm.