In the coming Monday, Tata Steel is likely to sign a deal for rescuing its Scunthorpe plant.
The sale of Scunthorpe steelwork has been a talk of the market since the year of 2014, while BBC reports that Greybull Capital, an investment firm based out of the United Kingdom, would be going through the deal with a “£400m investment package”.
Moreover, there has been an understanding that the said deal would provide the opportunity to “secure” as many as “4,800 jobs” besides creating space for “thousands more in supply chains and the local economy”.
Since Tata had started the talks of selling its Scunthorpe plant, Greybull had come into the picture with a plan of purchasing the same. In the meantime, the former decided to sell its entire UK business”, whereby leading the Greybull to carry out a discussion with the government of the United Kingdom, urging the latter to sanction a loan amount of “£100m” which would help fund a part of Greybull’s abovementioned investment.
The deal also requires a three percent of staff “pay cut for a year”, which would be accepted by them as well. However, Greybull is not expecting to reduce “more jobs than the 1,200” which has been already announced. On the other hand, the confirmation came from Tata Steel’s end that it is putting up its entire U.K business for sale only towards the end of March 2016.
The Statement coming from Tata Steel goes like this:
“Following the strategic view taken by the Tata Steel Board regarding the UK business, it has advised the board of its European holding company i.e. Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts.
“Given the severity of the funding requirement in the foreseeable future, the Tata Steel Europe Board will be advised to evaluate and implement the most feasible option in a time bound manner.”
References:
http://www.digitallook.com/
The sale of Scunthorpe steelwork has been a talk of the market since the year of 2014, while BBC reports that Greybull Capital, an investment firm based out of the United Kingdom, would be going through the deal with a “£400m investment package”.
Moreover, there has been an understanding that the said deal would provide the opportunity to “secure” as many as “4,800 jobs” besides creating space for “thousands more in supply chains and the local economy”.
Since Tata had started the talks of selling its Scunthorpe plant, Greybull had come into the picture with a plan of purchasing the same. In the meantime, the former decided to sell its entire UK business”, whereby leading the Greybull to carry out a discussion with the government of the United Kingdom, urging the latter to sanction a loan amount of “£100m” which would help fund a part of Greybull’s abovementioned investment.
The deal also requires a three percent of staff “pay cut for a year”, which would be accepted by them as well. However, Greybull is not expecting to reduce “more jobs than the 1,200” which has been already announced. On the other hand, the confirmation came from Tata Steel’s end that it is putting up its entire U.K business for sale only towards the end of March 2016.
The Statement coming from Tata Steel goes like this:
“Following the strategic view taken by the Tata Steel Board regarding the UK business, it has advised the board of its European holding company i.e. Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts.
“Given the severity of the funding requirement in the foreseeable future, the Tata Steel Europe Board will be advised to evaluate and implement the most feasible option in a time bound manner.”
References:
http://www.digitallook.com/
