(Updates with closing share prices in second and last paragraphs.)
June 17 (Bloomberg) -- Tata Steel Ltd., India’s biggest producer, gained the most in three months after agreeing to sell its stake in Australia’s Riversdale Mining Ltd. for A$1.06 billion ($1.12 billion.)
Tata shares climbed 3.6 percent, the most since March 1, to 573.05 rupees at the 3:30 p.m. close in Mumbai. The shares have fallen 16 percent this year, while the benchmark Sensitive Index of the Bombay Stock Exchange declined 13 percent.
Rio Tinto Group, the world’s second-largest mining company, gained almost full control of Sydney-based Riversdale after Tata Steel said it would sell its 26.3 percent stake that has almost doubled in value in less than four years. The transaction takes Rio’s holding to 99.47 percent.
Rio’s acquisition of Riversdale gives the world’s second- largest mining company reserves of coking coal in Mozambique as prices for the steelmaking ingredient increase. Tata Steel had said as recently as April 25 that it would continue to hold its stake in Riversdale. Rio’s offer of A$16.50 a share is due to close today.
Rio said in April it will seek to delist Riversdale from the Australian stock exchange once the takeover is completed. Its shares fell 0.7 percent to A$77.82 at the 4:10 p.m. close in Sydney.
--Editors: Indranil Ghosh, Abhay Singh
To contact the reporter on this story: Abhishek Shanker in Mumbai at firstname.lastname@example.org
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