tata steel to sell its entire stake of 26.27%

MUMBAI-- Tata Steel has decided to sell its entire stake of

26.27% in Riversdale Mining to Rio Tinto PLC for about 1.06

billion Australian dollars.

The Indian steelmaker's decision, announced in a stock

exchange filing, comes a day before Rio Tinto's takeover

offer for the Africa-focused coal miner expires.

Rio Tinto is looking to delist the Australian company. The

London-based mining giant owns 73.42% of Riversdale,

leaving the free float of shares at just 0.3% of the total.

Tata Steel said it decided to sell the stake as it didn't

want to hold any equity investment in Riversdale without a

joint-venture agreement with Rio Tinto after Riversdale's

potential delisting.