Khopoli Investments, a subsidiary of Tata Power, has completed the sale of the company’s entire stake in Cennergi, a South African joint venture of Exxaro Resources, for an amount of R1,550 million.
Cennergi was a 50:50 joint venture between South Africa’s coal producer Exxaro Resources and Khopoli Investments.
After this sale Exxaro will now have 100% ownership of the company.
Cennergi owns two wind farms; Amakhala Emoyeni (134.4MW with 95% shareholding) and Tsitsikamma Community Wind Farm (95.3MW with 75% shareholding) in South Africa.
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Both projects have a 20-year Power Purchase Agreement (PPA) with the state-owned power utility Eskom.
“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 & 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 added.
ABSA Bank was the sole advisor to Khopoli for the transaction. Tata Power is India’s largest integrated power company.