Tata Power Company has completed the sale of its 50% stake in Cennergi, a South African joint venture with Exxaro Resources, to the latter South African Rands 1,550 million (Rs 660 crore), the company announced late Wednesday.
The Tata group’s power utility has announced in September that it will exit its investment in Cennergi by selling its stake to the joint venture partner.
The sale is a part of the company’s plan to reduce the leverage on its balance sheet by divesting non-core and sub-optimal size international assets.
The proceeds from such a sale would be re-invested in emerging areas where there is a huge growth opportunity. The company will focus on renewable power, power distribution and service-led businesses in India which will bring in greater value and help in aligning with the emerging consumer needs.
The company said that the sale was done for ZAR 1,550 million and normal working capital and other adjustments. Cennergi owns two wind farms — Amakhala Emoyeni (134.4 mw 95% shareholding) and Tsitsikamma Community Wind Farm (95.3 mw with 75% shareholding) — in South Africa.
Both projects have 20-year Power Purchase Agreement (PPA) with the state power utility Eskom. ABSA Bank was the sole advisor to Khopoli for the transaction.
The company was in advanced talks for divestment of some other assets, which could be announced in the first two quarters of 2020-21.
This is a Syndicate News-Feed edited by Clean-Future Team