Tata Power Company said that it has inked share purchase agreement with Tata Power International (TPIPL) for sale of 100% equity shares held in Trust Energy Resources (TERPL) for a consideration of $285.64 million.
Both, TPIPL and TERPL, are entirely owned subsidiaries of Tata Power Company.
The firm anticipates completing the transaction in
the next two to three weeks, subject to necessary regulatory approvals, if any. The agreement was signed on 22 July 2021 and the likely date of the completion of sale/disposal is 10 August 2021.
TERPL would persist to remain fully owned subsidiary of TPIPL and would merged into TPIPL in the due course, subject to the regulatory approvals, the firm said in a statement.
TERPL's return for FY21 was $187 million, which is approximately 4% of the total consolidated turnover of Tata Power Company (TPCL) in FY21.
Net worth of TERPL as on 31 March 2021 was $268.15 million, which is approximately 9% of total consolidated net worth of TPCL as on 31 March 2021
The scrip is up 1.33% presently to trade at Rs 125.30 on the BSE.
Tata Power is India's largest incorporated power firm and, together with its subsidiaries & jointly controlled entities, has an installed/ managed capacity of 12,808 MW.