Companies

Tata Power exits South African JV for ZAR 1550 million

Our Bureau Mumbai | Updated on April 01, 2020

Khopoli Investments, a 100 per cent subsidiary of Tata Power has completed the sale of the its entire stake in Cennergi, a South African joint venture to Exxaro Resources for South African Rand (ZAR) 1550 million.

Cennergi (Pty) Ltd was a 50:50 joint venture between Exxaro Resources Ltd and Khopoli Investments Ltd, a wholly owned subsidiary of The Tata Power Company Ltd. Exxaro is a leading South African coal producer.

Exxaro has acquired the entire 50 per cent shareholding of Khopoli Investments Ltd. and will now has a 100 per cent ownership of Cennergi, the company said in a statement.

“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, Tata Power. “The proceeds from such sale would be re-invested in emerging areas where there is a huge growth opportunity. Tata Power 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.

Cennergi owns two wind farms- Amakhala Emoyeni with 134.4 MW capacity with 95 per cent shareholding and Tsitsikamma Community Wind Farm with 95.3 MW capacity, with 75 per cent shareholding in South Africa. Both projects have 20-year Power Purchase Agreement (PPA) with the State power utility Eskom.

The sale of this asset is a part of Tata Power’s plan to reduce Tata Power’s debt, which in September 2019 was Rs 44,900 crore.

Published on April 01, 2020

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