T S Global Holdings (TSGH), a wholly owned subsidiary of Tata Steel, has signed an agreement with Beijing-based HBIS Group to divest its entire majority stake in its South-East Asia business, which comprises of NatSteel Holdings and Tata Steel (Thailand) Public Company.

As per the agreement, the divestment will be made to a company in which 70 percent equity shares will be held by an entity controlled by HBIS and 30 percent will be held by TSGH, the company said in a BSE filing, adding that the agreement was signed for $327 million between the two parties.

The agreement was signed on Monday in China and is expected to be completed in 3-4 months, subject to regulatory approvals, the company said.

T V Narendran, chief executive officer and managing director, Tata Steel said, it has been in discussions with HBIS Group over the future of South-East Asia (SEA) business.

"The definitive agreement is a significant milestone in our strategic relationship, offering the SEA business robust growth opportunities, given the access to resources, technical expertise and regional understanding of HBIS. Tata Steel remains committed through its shareholding to help create a sustainable future for all stakeholders," he said.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27.5 million tonne per annum (MTPA). It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world.

HBIS Group was established on June 30, 2008 by the merger of Tangshan Iron and Steel Group and Handan Iron and Steel Group of Hebei Province in China. It is amongst the largest steel makers in the world.

The Chinese firm is into home appliance, automotive steel, and supplies steel for nuclear power, marine engineering, bridges and construction.

(With inputs from PTI)

First Published:Jan 28, 2019 1:23 PM IST