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Tata Steel is struggling to run Port Talbot, a facility that Gupta nearly acquired more than three years ago.
The speciality steel business directly employs nearly 1,700 people making steel for aerospace, automotive and oil and gas industries. Tata Steel UK CEO Bimlendra Jha said that in the last couple of years, Tata Steel has been undertaking a transformation plan at the speciality steel division.
After invocation of SDR (Strategic Debt Restructuring) in October last year, a consortium of 22-lenders took control of 51 percent stake in the company, which has loan dues worth Rs 16,400 crore.
Tata Steel UK has signed a definitive agreement with Liberty House Group to sell its speciality steel business for a total consideration of pound 100 million.
Amid reports that Reliance Defence, Shapoorji Pallonji Group and the UK's Liberty House Group have shown interest in buying ABG Shipyard, the debt-ridden company today said it is in discussions with various firms which may be prospective investor.
Last month, Tata Steel UK Holdings Ltd (TSUKH, a wholly- owned subsidiary of Tata Steel UK, announced that it had signed a letter of intent with Liberty House to enter into exclusive negotiations on the potential sale of its Specialty Steel business for an enterprise value of GBP 100 million.
Indian firm Tata said the sale of some facilities, including its Port Talbot plant, would be paused. But Tata said it will begin separate steps towards the potential sale of its Speciality Steels business and the northern English Hartlepool pipe mills, except for its 20-inch Tube Mill.
The firm is one of a number of companies that have put forward offers to buy Tata Steel's loss-making UK operations and save thousands of jobs in Britain, whose steel industry has been hit by cheap Chinese imports, high energy costs and a global supply glut.
The company described this as an "indicative bid for the entire issued share capital of Tata Steel UK," central to which is the Port Talbot steelworks in south Wales the UK's largest and employs around 4,000 workers.
Tata, one of the world's biggest steelmakers, said on March 30 it was putting its British assets up for sale, citing a global oversupply of steel, high costs, weak domestic demand and a volatile currency.
Prime Minister David Cameron's government has said it is working to broker a deal with potential buyers after India's Tata Steel put its loss-making British plant up for sale last week, threatening thousands of jobs.
