The world's seventh largest steelmaker Tata Steel on Friday said its Singapore-based subsidiary NatSteel Holdings has sold its entire 27.03 per cent stake in Malaysian group Southern Steel Berhad for US$72 million (RM232 million).

"NatSteel Holdings Pte has sold its entire 27.03 percent stake in

Southern Steel Berhad at a total consideration of around US$72 million," Tata Steel Chief Financial Officer Kaushik Chatterjee told Indian news agency PTI .

Although, Chatterjee did not elaborate on where the proceeds would be used, he said: "The sale is part of Tata Steel's strategy of restructuring its portfolio and reconsidering its position in geographies where it does not have a majority control."

The transaction is subject to approval of relevant regulatory authorities like Bursa Malaysia, a company statement said.

"The company will continue to explore various opportunities to grow its Southeast Asian business in future," it added.

Tata Steel is already present in regions like Europe, North America, Asia, Australia through its subsidiaries like Corus, Tata Steel and NatSteel.

NatSteel holdings, which Tata Steel had acquired for US$486 million (RM1.567 billion) in 2004, produces 2 million tonnes of steel products mainly used by construction industry.

The Malaysian Southern Steel Berhad has 1.3 million tonnes per annum steel capacity.

- Bernama