The government is willing to take a 25% stake in any rescue of Tata Steel’s UK operations, it has been announced, reports Asian Lite news.
According to BBC, the business department has said that it was preparing a support package “worth hundreds of millions of pounds” available to potential buyers in an attempt to rescue the steel giant Tata Steel.
Business Secretary Sajid Javid is reported to have said that the money would be offered on commercial terms, but the government would not take any control over the business.
It is learned that at least two potential buyers have shown interest in buying the business.
One option is a management buyout backed by the chief of Tata’s Port Talbot factory, the UK’s largest steel operation.
Steel company Liberty House, owned by Sanjeev Gupta, has also said it was interested in buying parts of the business.
Mr Javid had said last week that the government was prepared to support a credible buyer with a finance package, including loans.
Thursday’s announcement followed another visit to Mumbai by Mr Javid to meet Tata’s chairman Cyrus Mistry, where the minister said progress on the sales process had been made.
Tata has said that it would give the government and potential buyers time to arrange a rescue package, but that it did not want to prolong the uncertainty for customers and workers.