Tata Steel sells stake in Tata Motors to Tata Sons for $586.3 million

Men ride a motorbike as they come out of a past a Tata Motors car plant at Sanand in the western Indian state of Gujarat, India, October 27, 2016. REUTERS/Amit Dave

(Reuters) - Tata Steel Ltd <TISC.NS> said on Friday it sold its stake in Tata Motors Ltd <TAMO.NS> to Tata Sons [TATAS.UL], the holding company of India's salt-to-software Tata conglomerate, for 37.83 billion rupees ($586.3 million).

Tata Steel sold about 83.54 million shares at 452.80 rupees apiece, it said in a stock exchange filing. (http://bit.ly/2tBmbAH)

As of end-March, the steelmaker owned a 2.9 percent stake or about 83.64 million shares in Tata Motors, according to stock exchange data. Last week, Tata Steel said it would sell the stake to Tata Sons on or after June 23.

A company logo is seen outside the Tata steelworks near Rotherham in Britain, in this March 30, 2016 file photo. REUTERS/Phil Noble/File Photo GLOBAL BUSINESS WEEK AHEAD PACKAGE Ð SEARCH ÒBUSINESS WEEK AHEAD SEPTEMBER 12Ó FOR ALL IMAGES - RTSNAFE

Indian media had reported that Tata Sons planned to reduce crossholdings among group companies.

(Reporting by Krishna V Kurup in Bengaluru; Editing by Amrutha Gayathri)

A worker walks through coils of steel to be used on Tata Steel's new robotic welding line at their Automotive Service Centre in Wednesfield, Britain, February 15, 2017. REUTERS/Darren Staples - RTSYRXP