Tata Power executes divestment of 50% stake in South African JV for $106 mn

The agreement is likely to be completed by Q3FY20, the company said.

Sep 17, 2019 06:09 IST India Infoline News Service

Tata Power
Tata Power has announced the execution of a Share Purchase Agreement between Khopoli Investments Limited (Khopoli) and Exxaro Resources Limited (Exxaro) for the divestment of its entire 50% stake held in Cennergi (Pty) Limited (Cennergi), a South African joint venture, for an amount of ZAR 1,550 mn. (USD 106 mn.}, subject to normal working capital and other adjustments.

The stock is currently trading down by 1%.

The agreement will be subject to, amongst others, normal regulatory approvals customary for this type of transaction. Cennergi (Pty) Ltd. is a 50:50 joint venture between Exxaro Resources Ltd. and Khopoli Investments Ltd., a wholly-owned subsidiary of The Tata Power Company Ltd. Exxaro is a leading South African coal producer.

Under the Agreement, Exxaro will acquire the entire 50% shareholding of Khopoli Investments Ltd. The agreement is likely to be completed by Q3FY20. Post this transaction, Exxaro will have 100% ownership of Cennergi, the company said.

Tata Power Company Ltd is currently trading at Rs63.55, down by Rs0.8 or 1.24% from its previous closing of Rs64.35 on the BSE.

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