New Delhi: Tata Steel on Thursday said it has sold its 26.27 percent stake in Australian coal miner Riversdale to global mining major Rio Tinto for AUD 1.06 billion (USD 1.11 billion).
    
"The sale consideration of approx AUD 1,060 million (about Rs 5,074 crore) represents around 100 percent appreciation of value in less than four years since the first investment," the home-grown steel major said in a statement.

The Anglo-Dutch miner Rio Tinto holds 73.2 percent stake in Riversdale, which has an estimated 13 billion tonne reserves in its two projects in Mozambique - Benga and Zambeze.
    
Riversdale has been a takeover target for Rio Tinto since December 2010 when it put in a bid of AUD 16 per share to acquire a majority stake in the Australian mining firm.
    
Tata Steel, along with Brazilian steel maker CSN, has been continuously opposing Rio's buying stake in Riversdale, maintaining that it was more interested in getting coal from Riversdale to feed its European operations than making a quick buck.
    
CSN backed out from its earlier stand in April and sold its entire 19.9 per cent stake to Rio Tinto.
   
 "As a part of the ongoing review of the strategic investments of the company, Tata Steel Board have considered the recent announcement of Rio Tinto Jersey Holdings 2010 Ltd to delist Riversdale following its increased shareholding to 73.2 percent in Riversdale.
    
"Tata Steel has decided that it would not want to hold its equity investment in Riversdale Mining, which is proposed to be delisted, without any joint venture agreement with the majority shareholder in unlisted Riversdale," Tata Steel said.
    
Tata Steel scrip today closed at Rs 553.15 per share, down 1.44 per cent from the previous close. Tata Steel Global Minerals Holding, a subsidiary of the world's seventh largest steel maker, was holding the stakes in Riversdale.
    
Meanwhile, Tata Steel retains its 35 per cent stake in Riversdale Energy (Mauritius), a subsidiary of Riversdale Mining.
    
In 2009, Tata Steel and Riversdale had formed a joint venture, Benga Coal Project, for developing the coal field.
    
"Tata Steel would continue to look forward to work with Rio Tinto and discuss in good faith ways to enhance its participation in the Benga Joint Venture based on the framework captured in the joint venture agreement between Tata Steel and Riversdale Mining," it said.

(Agencies)