Cennergi Pty Ltd is a 50:50 joint venture between Exxaro Resources, South Africa’s leading coal producer, and Khopoli Investments, a 100% subsidiary of Tata Power
Mumbai: Exxaro Resources Ltd, South Africa’s leading coal producer, will acquire the entire 50% shareholding of Khopoli Investments Ltd, a 100% subsidiary of Tata Power, according to an announcement made on Tuesday.
Khopoli Investments declared the execution of a share purchase agreement with Exxaro Resources Ltd for divestment of the company's entire 50% stake in Cennergi, a South African joint venture, for $106 million (about Rs 752 crore).
The agreement is likely to be completed by the third quarter (October to December).
Cennergi Pty Ltd is a 50:50 joint venture between Exxaro Resources and Khopoli Investments.
"The decision to monetise this South African asset is in alignment with our stated strategy to deleverage the balance sheet by divesting sub-optimal size international assets," said Praveer Sinha, CEO and managing director of Tata Power.
"The proceeds from such 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 us align with the emerging consumer needs," he said in a statement.
ABSA Bank was the sole advisor to Khopoli Investments for the transaction.
Cennergi owns two wind farms in South Africa -- Amakhala Emoyeni (with a generation capacity of 134.4 megawatts and 95% shareholding) and Tsitsikamma Community Wind Farm (with a generation capacity of 95.3 megawatts and 75% shareholding). Each project has a 20-year power purchase agreement with the state power utility Eskom.
Tata Power is India's largest integrated power company. Together with its subsidiaries and jointly controlled entities, it has an installed capacity of 10,957 megawatts.
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Last Updated Sep 17, 2019, 2:33 PM IST