Tata Steel sells Riversdale Mining stake for A$1.06bn

Tata Steel has sold its stake in Africa-focused Riversdale Mining for a cool Australian dollar 1.06 billion, walking away with nearly 100% profit from the investment, reports CNBC-TV18's Swati Khandelwal Jain.

Tata Steel said that they tendered Riversdale shares in Rio Tinto open offer. The Tata group company said that they continue in a joint venture with Riversdale Mining, where it holds 35%. The two companies had formed a 35:65 joint venture company Benga Coal Project for developing the coal field in 2009. On March 3, 2011, the company had hiked its voting power in Riversdale to 27.13% from 24.21% via Tata Steel Global Mineral Holdings Pte. It had acquired additional 2.99% voting power for Australian dollar 113.6 million.