Tata Steel has sold its 51 per cent stake in group company Tata Refractories to Nippon Steel’s associate Krosaki Harima Corporation (KHC) for Rs. 576.3 crore ($ 128 million) and inducted the Japanese firm as a strategic partner..“Under this arrangement, KHC will acquire 51 per cent equity stake out of Tata Steel’s current 77.46 per cent stake in Tata Refractories”, the leading Indian steelmaker said in a statement..Khaitan & Co advised KHC with a team led by Partners Haigreve Khaitan and Zakir Merchant while Morrison Foerster Tokyo advised Krosaki Harima on non-India laws with a team led by Partner Gary Mitchel..AZB & Partners advised Tata Refractories with a team led by Partner Shameek Chaudhuri..KHC Japan is the largest refractory player in Japan and a prominent industrial conglomerate engaged in five business segments. Its 42.9 percent equity is owned by Nippon Steel..Tata Refractories is the largest refractories manufacturer in India and meets the requirement of industries like steel, glass, cement, non-ferrous and petro-chemicals..This is the largest acquisition by a foreign company in the refractories sector in India..According to Financial Express, Tata Steel would continue to hold 26.46 per cent stake in the Tata Refractories. Tata Refractories has been valued at approximately Rs. 1,130 crore.
