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Tata Steel agrees to sell Long Products Europe business to Greybull Capital

's Tata Steel UK Ltd. unit said April 11 that it signed an agreementto sell its Long Products Europe business to Greybull Capital for a "nominalconsideration" — a move that could save the business' 4,800 employees.

No price forthe sale was disclosed but the company said the buyer would take on the whole business,including its assets and liabilities, and would secure an appropriate funding package.

According toa report from The Telegraph, the businesswas sold for a nominal £1, but will be supported by a £400.0 million investmentpackage — half of which will be from Greybull Capital and its investors, while theother half will come from bank funding.

A previous newsbrief from the Financial Times cited TataSteel finance director Koushik Chatterjee as saying that the company's lossmakingsteel operations up for sale in the U.K. has a book value of "."

The sale agreementfollows an accelerated process of negotiations between Tata Steel UK and GreybullCapital from the signingof the letter of intent in December 2015.

The sale coversseveral U.K.-based assets, including Scunthorpe steelworks, two mills in Teesside,an engineering workshop in Workington, a design consultancy in York, and associateddistribution facilities, as well as a mill in northern France.

Greybull Capital'sacquisition of the Tata Steel business would be completed upon satisfaction of certainconditions, including transfer of contracts, government approvals and the completionof financing arrangements.

The Telegraph further wrote that Tata Steel's Long Products Europebusiness will be renamed British Steel once the sale is completed, which is expectedwithin eight weeks.

Meanwhile, TataSteel is under investigationby the U.K. Serious Fraud Office for allegedly fabricating certificates specifyingproduction composition before they were sold.