T S Global Holdings Pte. Ltd. (TSGH) has intimated sacking of divestment agreement involving 70% equity stake in two of its subsidiaries in Southeast Asia with Chinese major Hesteel Group (formerly known as HBIS Group).
On 28 Jan’19 TATA Steel’s wholly owned subsidiary (WOS) TSGH had executed an agreement with the Hesteel Group intending to divest its 70% equity stake in NatSteel Holdings Pte. Ltd. (NSH) and TSGH. The proceedings of agreement was subject to approval from regulatory authorities.
The company was later informed of inability of Hesteel Group to proceed with the agreement amid Hebei government’s disapproval on the same. However it remains unclear as to why the provincial government has disapproved the deal.
Meanwhile TATA Steel has clearly stated it will begin searching for a partner for its Southeast Asian business.
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