Tata Steel to retain Riversdale stakes

MUMBAI (Scrap Monster): Tata Steel will retain its stakes in mining firm Riversdale, for which Rio Tinto has acquired 72% shares early this month, said Tata Steel’s Vice Chairman B Muthuraman.

Tata Steel, with a stake of 27.14 per cent in Riversdale, is the second largest shareholder in the company currently. Last week, Tinto acquired a 72 per cent stake in the Australian mining firm and purchased the entire stake (19.9 per cent) of Brazilian steel maker CSN, another big shareholder in the Australian mining firm.

Riversdale has been a takeover target for Rio Tinto since last December, Rio Tinto finally offered AUD 16.50 per share to get hold of holding in Riversdale.

However, Rio only managed to acquire majority stake in Riversdale early this month due to stiff resistance from both Tata Steel and CSN, which used to hold a 19.9 per cent stake.

The announcement of Rio had triggered speculation that Riversdale may get delisted from the Australian Stock Exchange as very few shares have been left for trading on the bourses, The Hindu reported.