#London : UK Tata Steel Despite losses increasing by the day and a second round of parleys with the UK government, Tata Steel board on Wednesday did not shortlist any of the seven bidders who have shown interest to take over the bleeding business, nor did it give a timeline by when it expects to shed the assets.
“A timeline for giving us the bids was day before yesterday and we are in the process of evaluating the offers and the bids that have come up. We are in a confidential phase in that process,” Tata Steel Group chief financial officer Koushik Chatterjee told reporters after the board meeting.
He said all the seven bidders have visited the company’s facilities, were given access to the data room and met the management before submitting their proposals, the deadline for which was Monday.
The seven bidders who have evinced interest to take over the operations include US steel giant Newcore Steel, Greybull Capital, Excalibur Steel, Liberty House, domestic major JSW Steel and Hebei Iron and Steel.
It can be noted that the British Government, led by Prime Minister David Cameron himself in the beginning, has been trying hard to ensure that there are no job losses because of the process, which comes amidst a protracted global slowdown in the sector caused by depressed prices.
Business secretary Javid has made two trips to meet the Tata brass in a month, the last one being yesterday which had heightened expectations of a sale announcement. First minister of Wales, Carwyn Jones, had also called on the Tatas today.
Chatterjee said conversations with the visiting British ministers and officials have been “constructive” and there has been “no pressure” from them.
“There has been intense conversations which we have had with the British Government over two months and that government has also made its position fairly clear on what they are willing to do for a new investor,” he said, referring to the UK Government’s assurance to pick up a stake.
With pension liabilities said to be one of the key concerns for the potential bidders, he clarified that the company has a well-running trust and it is upto the bidder to decide on its future. He also declined to give any indication on the outstanding liabilities which may come a bidder’s way.
The board of Tata Steel Europe will be considering the proposals and also getting its doubts clarified from the bidders before the list is narrowed and more detailed set of negotiations start, he said.
He, however, declined to give an exact timeline which the company is targeting to sell off the business.
Chatterjee also refused to answer queries on the structure of the deal as regards what happens to the debt.
Declining to give an exact idea of the debt profile of the business which is on the block, he said Tata Steel Europe has an outstanding debt of 3 billion euros.
Chatterjee also scotched the speculation that Tatas will continue to hold on to the assets, saying they have entered the process to sell it off and cannot think both ways.
When asked if losses from British operations are indeed at 1 million pounds a day, Chatterjee said the number is from over six months ago and after that there has been some improvement in the steel sector, but declined to quantify.
On March 29, the Tatas had made a public announcement to exit the British operations acquired from Corus in the heady days of mid-2000s for a whopping USD 12.4 billion, in part or in full. They entered into an agreement to sell its long products division for an exemplary 1 pound last month. By Agencies
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