Posts Tagged ‘Tata Steel’

The Raj reversed

March 29, 2016

A UK delegation to India to secure jobs in Wales.

Does not need much further comment.

cyrus mistry (chairman) and ratan tata (former chairman) tata sons image - bisinesstoday

cyrus mistry (chairman) and ratan tata (former chairman) tata sons (image – businesstoday.in)

BBC:

UK union leaders have held talks in India ahead of a Tata Steel board meeting that could decide the fate of thousands of workers. Officials from the Community union had “constructive” talks with Tata Steel representatives in Mumbai, where the board is meeting on Tuesday.

The future of thousands of UK steelworkers is at stake. The Port Talbot plant in south Wales suffered most of the 1,000 job losses announced in January. Unless Tata goes ahead with a turnaround plan, the future of the huge plant could be in doubt.

Roy Rickhuss, general secretary of Community, along with Stephen Kinnock, MP for Aberavon, and Frits van Wieringen, chairman of the Tata Steel European works council, met in Mumbai with senior representatives of Tata Steel ahead of Tuesday’s board meeting.

A Community spokesman said the meeting was “open and constructive”, with the European delegates making the case for Tata to continue to support the UK business.

The myth in the UK that India gained more from British rule than the economic benefits squeezed out of India is addressed very well by Shashi Tharoor in his speech at the Oxford Union.

Dr Shashi Tharoor MP – Britain Does Owe Reparations


 

“Green” subsidies increase energy prices which leads to fewer jobs

November 23, 2012

It should have been and should be patently obvious that subsidy regimes are largely counter productive, but such is the power of self-righteous, environmental correctness – which is the modern face of fascism – that many more jobs will be lost and much more tax-payer’s money squandered before sanity will prevail again. Further job losses in the UK were announced by Tata Steel just as the government announced plans to triple the burden on consumers for further nonsense subsidies for “green” power.

(more…)

Rio Tinto wins battle for Riversdale coal as major shareholder Tata Steel accepts offer

June 16, 2011

I had posted back in December last year about the battle for the acquisition of 13 billion tons of coking and steam coal reserves with Riversdale in Mozambique.

Riversdale Mining Ltd. has 13 billion metric tonnes of known coking and thermal coal reserves in its Benga and Zambeze projects in Mozambique. A global battle is now hotting up for the acquisition of Riversdale . International Coal Ventures Ltd., an Indian state-run joint venture, is studying an offer for Riversdale Mining Ltd. to counter a A$3.9 billion ($3.9 billion) bid from Rio Tinto Group.

The largest share holder was Tata Steel and they have now decided to exit. Hindustan Times reports

 

After months of speculation, steel major Tata Steel on Thursday said it had sold off its entire 26.27% stake in Australian mining firm Riversdale, facing a takeover from giant Rio Tinto, for Australian $1.06 billion (approximately Rs4,940 crore). It is a rich exit, as the Tatas have doubled their investment in a 4 year period.

Rio Tinto, which had made an open offer to the shareholders of Riversdale in March that had been repeatedly extended to a final deadline that now closes on Friday, sees its shareholding go up from 73.20% to almost 99.7%. 

The British-Australian group had said it planned to delist Riversdale from the Australian bourses and Tata Steel, which had for long maintained that it wanted to remain invested in the company, said on Thursday that it finally decided to sell the stake in the absence of a pact with Rio.

“Tata Steel has decided it would not want to hold its equity investment in Riversdale Mining Ltd which is proposed to be delisted, without any joint venture agreement with the majority shareholder in unlisted Riversdale Mining Ltd,” Tata said in a statement to the Bombay Stock Exchange.

“The sale represents around 100% appreciation of value in less than 4 years since its first investment,” it said.

Even as more shale gas becomes available and “peak gas” becomes less and less likely, the value of coal assets is also increasing. Shale gas may well lead to a move back to fossil energy and the future availability of gas does not seem to hurt the value of coal.

King Coal: The global battle to control resources

December 26, 2010

Riversdale Mining Ltd. has 13 billion metric tonnes of known coking and thermal coal reserves in its Benga and Zambeze projects in Mozambique. A global battle is now hotting up for the acquisition of Riversdale and the potential bidders clearly have no doubts about the continued use of coal and are not greatly impressed by the passing fad of Global Warming alarmism.

King Coal: image pitt.edu

Bloomberg reports:

International Coal Ventures Ltd., an Indian state-run joint venture, is studying an offer for Riversdale Mining Ltd. to counter a A$3.9 billion ($3.9 billion) bid from Rio Tinto Group.

ICVL appointed Citigroup Inc. to examine a possible takeover offer for the Sydney-based coal company with mines in Mozambique, the venture’s chairman C.S. Verma said yesterday. London-based Rio yesterday bid A$16 a share for Riversdale, securing 14.9 percent of the company in pre-bid agreements.

Indian companies are seeking coal mines overseas to ensure raw material supplies for producing steel and electricity. Brazil’s Vale SA or Eurasian Natural Resources Corp. may make bids, according to Sanford C. Bernstein & Co., as Tata Steel Ltd., Riversdale’s biggest holder, said it will study Rio’s offer “in the context of other alternatives” available to Tata. “The A$16 cash offer is unlikely to secure acceptance from all of Riversdale’s shareholders,” analysts led by Hayden Bairstow at CLSA Asia-Pacific Markets, said yesterday in a report, raising his price target for Riversdale by 3 percent to A$18. Riversdale’s “Benga and Zambeze coal projects are world class and we believe other suitors may show an interest in Riversdale now a formal bid has been tabled,” he said.

Tata Steel holds 24 per cent stake in Riversdale and is its largest shareholder. Sources say there have been talks between ICVL and Tata Steel for a joint bid or at the very least support from Tata Steel for ICVL’s bid. However, ICVL did not confirm that any talks took place between the consortium and Tata Steel reports The Hindu Business Line.

But more bidders are appearing and it is likely that the shareholders of Riversdale can expect a much higher price than what is on the table now. The Guardian reports that:

The global battle for control of the world’s natural resources flared again when it emerged that Anglo American could gatecrash Rio Tinto’s plans to buy Riversdale Mining, the Australian coking coal group, for £2.5bn.

Headed by chief executive Cynthia Carroll and chairman Sir John Parker, Anglo has joined a list of possible counter-bidders for Riversdale, whose African business produces coal for the fast-growing Asian steel industry.

Evidence of the importance of coking coal to China surfaced recently when Riversdale signed an agreement with Wuhan Iron and Steel to jointly develop Riversdale’s huge Zambeze coal reserves in Mozambique.

Anglo, which is believed to have appointed Morgan Stanley to advise on its options, will face stiff competition, with the Wall Street Journal reporting that Tata Steel of India, which controls 24% of Riversdale, is considering an offer.

Another potential bidder is ICVL, an Indian consortium that has appointed Citigroup as a financial adviser and mandated the bank to report back on the viability of a bid that would top Rio’s promise of A$16 a share.

Tata Steel has just received shareholder approval “for raising of additional long-term resources through issue of securities, including equity shares with differential rights as to voting and dividend, up to Rs 7,000 crore ($1,550 million)”. A company press release said “Tata Steel notes the takeover bid for Riversdale Mining announced by Rio Tinto. Tata Steel will evaluate the takeover bid in the context of other alternatives available to Tata Steel.” Riversdale is important for the long-term coking coal security for Corus. Tata Steel is already entrenched in its Mozambique coal mining project with a strategic stake and long-term supply contract. With Tata Steel’s share of Riversdale valued at almost $1 billion by the Rio Tinto bid it is likely that the final selling price will be significantly higher than Rio Tinto’s bid.

An educated guess would suggest a final selling price of over $5 billion or over A$20 per share.



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