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Britain says could take 25% equity stake in Tata Steel UK assets

Thursday, April 21, 2016 - 21:31

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Britain said on Thursday it could take an equity stake of up to 25 per cent in Tata's UK steel assets or provide hundreds of millions of pounds worth of debt financing to help support a potential buyer.

[LONDON] Britain said on Thursday it could take an equity stake of up to 25 per cent in Tata's UK steel assets or provide hundreds of millions of pounds worth of debt financing to help support a potential buyer.

"If we were to take an equity stake it would be a minority one with the aim of supporting the purchaser in delivering long term future for the business, we are certainly not seeking to be controlling the company," a spokeswoman for Prime Minister David Cameron said.

Britain could take a stake of up to 25 per cent in the assets, the Business Ministry said in a statement but added that the government would take no control over the business.

The government said it was working with the pension scheme trustees of Tata Steel and British Steel to minimise any pension impact on the purchaser.

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"The UK Government is actively working with Tata Steel and the British Steel Pension Scheme's Trustees to find a solution that will help minimise its impact on a potential purchaser, and potentially separate it from the business," the ministry said.

REUTERS

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