Tata Steel stock trading higher after UK business severs links with British Steel Pension Scheme

 BT Online        Last Updated: September 12, 2017  | 12:48 IST
Tata Steel stock trading higher after UK business severs links with British Steel Pension Scheme

The Tata Steel stock rose higher in early trade after the firm announced that it has concluded a new agreement under which its UK business stands separated from the 15-billion pound British Steel Pension Scheme (BSPS).

At 9:46 am, the stock was trading almost 4 percent or 26 points higher at 687.35 level on the BSE.

On an year-to-date basis, the stock is up 76.22 percent or 297 points.

On an yearly basis, the stock is up 84 percent or 315 points.

The stock was the top gainer on the 30-stock Sensex followed by Hindustan Unilever (1.23 percent) and ITC (1.10 percent).

"Tata Steel UK has received confirmation from the pensions regulator that it has approved a regulated apportionment arrangement (RAA) in respect of BSPS," Tata Steel said in a statement.

As part of the arrangement, a payment of 550 million pound has been made to BSPS by Tata Steel UK and shares in Tata Steel UK, equivalent to 33 per cent stake, have been issued to the BSPS trustee, the steel giant said.

The BSPS has now been separated from Tata Steel UK and a number of affiliated companies, it added. Last month, Tata Steel had announced clinching of the deal facilitating detachment of the BSPS from its UK business. The company, in the statement, said its UK business has agreed to sponsor a proposed new pension scheme subject to meeting of certain qualifying conditions.

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