New Delhi: Shareholders of Usha Martin have approved the sale of the company’s steel business to Tata Steel as a going concern on a slump sale basis. A special resolution in this regard was passed with requisite majority at Usha Martin Ltd’s extraordinary general meeting, with 99.99% shareholders voting in its favour, the company informed the exchanges in a regulatory filing Saturday.

“The resolution proposed herein above has been passed with requisite majority," Usha Martin said in the late night filing.

Tata Steel had earlier said it has executed definitive agreements for the acquisition of Usha Martin’s steel business for 4,300-4,700 crore through a slump sale on a going concern basis.

According to Usha Martin, the sale of its steel business to Tata Steel will help the company significantly reduce its debt.

Usha Martin’s steel business comprises the specialized 1 million tonne per annum (mtpa) alloy-based manufacturing capacity in long products segment based in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants, Tata Steel had said. It is among the largest wire rope manufacturers in the world and a leading speciality steel producer in India.