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LONDON - Structural steel group Severfield plc (LSE:SFR) has entered into a share purchase option agreement with JSW Steel (NSE:JSTL) Limited, granting Severfield the right to sell up to 24.9% of its stake in their Indian joint venture, JSW Severfield Structures Limited (JSSL).
The agreement, announced Friday, allows Severfield to dispose of part of its current 50% interest in JSSL to JSW for up to £20 million. The option can be exercised at Severfield’s discretion any time before March 31, 2026.
Severfield stated there is "no current intention to exercise the Option Agreement" and emphasized that any decision to sell would only follow "a rigorous business case assessment."
The company described the arrangement as reflecting its "prudent approach to strategic planning" while providing additional financial flexibility.
JSSL, which specializes in design, fabrication and erection of structural steelwork for construction projects, remains "a strategically important venture" for Severfield, according to the press release statement. The company affirmed its commitment to the partnership with JSW and belief in JSSL’s "long-term value creation potential within the Indian market."
JSW Steel Limited, described as India’s leading steel manufacturer, currently holds the other 50% interest in the joint venture.
Severfield will announce its financial results for the year ended March 29, 2025, on Thursday, July 24.
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