Tata Steel Europe on Monday announced it has received seven expressions of interest to acquire the firm's UK ailing business. All seven have been "immediately taken forward" to the next stage of the sale process, which involves inputs from the UK government, the firm said in a statement.
Koushik Chatterjee, Group Executive Director (Finance and Corporate), Tata Steel limited, said, "We are pleased with the response to the initial stage of the global sales process for Tata Steel's UK business.
The announcement by Tata Steel Europe marks another important stage gate in this process. “The expressions of interest received have been through a robust initial assessment process with inputs received from the UK government whose views have been considered by the board.’
“We believe that the bids being taken forward offer future prospects of sustainability for the UK business as a whole. The sales process will continue as announced earlier in an expedited and robust manner to deliver greater clarity for all key stakeholders such as employees, customers and suppliers, he said.
“Whilst the sales process continues, Tata Steel's business in the UK under the new leadership team continues to focus on the business performance,” he said.
The UK Government has promised to put in place measures worth hundreds of millions of pounds to support any rescue deal for Tata’s UK business – which could include taking a stake of up to 25 per cent.
Tata Steel Europe said it is also clarifying outstanding points with a number of other parties who have submitted an expression of interest. It said that the seven expressions of interest being take forward fit in with the company's ‘primary intention’ to ensure the sale of the whole of Tata Steel's UK business.
“Expressions of interest for parts of the UK business are not being taken forward at this point,” the firm said. In the next phase of the sales process the progressing interested parties will be given access to further business information and management team presentations in order for them to rapidly progress their interest to a binding stage.