Tata Power is India's largest integrated power company with installed capacity of 10,957 MW
Tata Power is India's largest integrated power company with installed capacity of 10,957 MW

Tata Power subsidiary to exit South African JV Cennergi for $106 million

ANI | Updated: Sep 17, 2019 13:24 IST

Mumbai (Maharashtra) [India], Sep 17 (ANI): Khopoli Investments Ltd, a 100 per cent subsidiary of Tata Power, on Tuesday announced the execution of a share purchase agreement with Exxaro Resources Ltd for divestment of the company's entire 50 per cent stake in Cennergi, a South African joint venture, for 106 million dollars (about Rs 752 crore).
Cennergi Pty Ltd is a 50:50 joint venture between Exxaro Resources and Khopoli Investments. Exxaro is a leading South African coal producer.
Under the agreement, Exxaro will acquire the entire 50 per cent shareholding of Khopoli Investments. The agreement is likely to be completed by the third quarter (October to December).
"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 per cent shareholding) and Tsitsikamma Community Wind Farm (with a generation capacity of 95.3 megawatts and 75 per cent 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. (ANI)