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Tata Power Company Ltd has completed the sale of its defence business to Tata Advanced Systems Ltd, a wholly owned subsidiary of Tata Sons Pvt Ltd.
Tata Power is expected to receive enterprise value of ₹1,076 crore as upfront payment (₹1,040 crore as per agreements which were revised in line with closing adjustments). Balance consideration is subject to completion of achieving certain milestones specified in the agreements.
The sale of defence business is part of the company’s ongoing strategic plan to monetise its non-core assets and reduce overall leverage.
Praveer Sinha, CEO & Managing Director, Tata Power, said: “The sale proceeds will help company to reduce leverage and increase focus in the core business areas like renewable generation, distribution and new service-led businesses which will bring greater value for our shareholders”.
Strategic Engineering Division (SED) is a non-core defence electronics division of the company, engaged in business of indigenous design, development, production, integration, supply and life cycle support of mission critical defence systems. The key products include manufacturing and assembling missile launchers, electronic warfare, night vision systems and gun systems.
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