Tata Power subsidiary sells 3 capsize ships for $213 mn

Private power producer Tata Power on Friday said it had entered into a definitive agreement for the sale of its three capsize ships, part of its shipping business, for a consideration of $212.76 million.

“Trust Energy Resources (TERPL), a wholly owned subsidiary of Tata Power, has completed signing of definitive agreements on June 11, with Oldendorff Carriers Gmbh & Co. KG, Germany,” the firm said in a statement to the BSE.

Tata Power Chief Executive and Managing Director Praveer Sinha said: “The sale of these assets was part of the company’s long-term plan to reduce debt and raise funds for growth plans, including expanding our presence in the renewable energy business”.

The company’s net debt as of March 2020 was at ~43,578 crore.

“The sale is also part of the restructuring within Tata Power to chalk out the roadmap for growth over the next decade,” Sinha said.

As part of the transaction, Tata Power will enter into a long-term freight contract with Oldendorff Carriers. “The deal is expected to be concluded in the next three to four weeks, subject to regulatory approvals,” the company said.