INSUBCONTINENT EXCLUSIVE:
Tata Power Company has completed the sale of its 50% stake in Cennergi, a South African joint venture with Exxaro Resources, to the latter
September that it will exit its investment in Cennergi by selling its stake to the joint venture partner
The company will focus on renewable power, power distribution and service-led businesses in India which will bring in greater value and help
The company said that the sale was done for ZAR 1,550 million and normal working capital and other adjustments
Cennergi owns two wind farms -- Amakhala Emoyeni (134.4 mw 95% shareholding) and Tsitsikamma Community Wind Farm (95.3 mw with 75%
shareholding) -- in South Africa
Both projects have 20-year Power Purchase Agreement (PPA) with the state power utility Eskom.
In an interview to ET, reported on March 20,
He had also said that the company was in advanced talks for divestment of some other assets, which could be announced in the first two
quarters of 2020-21 despite the disruption caused by Covid-19 pandemic
ABSA Bank was the sole advisor to Khopoli for the transaction.
Tata Power and its subsidiaries and jointly controlled entities, have an
installed capacity of 10,763 mw
Of this, solar and wind energy account for 30% of the portfolio
The company, through its subsidiary, Khopoli Investments, formed a joint venture with Exxaro in 2013, with an aim to develop power projects
in South Africa, Botswana and Namibia.