Tata Power on Friday said that its subsidiary, Trust Energy Resources Pte Ltd (TERPL), will sell three ships to German company Oldendorff Carriers GmbH & Co. KG for an estimated cost of $212.76 million. The sale of the three ships, MV Trust Agility, MV Trust Integrity and MV Trust Amity, currently owned byTERPL is expected to be concluded in the next three to four weeks and is subject to necessary regulatory approvals, Tata Group company said in a regulatory filing.
"Singapore-based Trust Energy Resources Pte Ltd (TERPL), a fully-owned subsidiary of The Tata Power Company Ltd (TPCL) has entered into definitive agreements with Oldendorff Carriers GmbH & Co. KG, Germany for the sale of three ships at an estimated consideration of USD 212.76 million," Tata Power said in a filing to the Bombay Stock Exchange.
The objective of the transaction is to have an asset-light model for the shipping requirements of the company, Tata Power said, adding that the sale proceeds will be used towards reducing the debt as part of the overall restructuring plan of the company.
Praveer Sinha, CEO & MD, Tata Power said, "The sale of our shipping assets announced today is in line with our long term plans to reduce debt and raise funds to invest in our future growth plans, including expanding our presence in the renewable energy business. The sale is also part of the restructuring within Tata Power to chalk out the roadmap for growth over the next decade."
The sale includes existing long term contracts associated with the ships with Oldendorff Carriers GmbH & Co. KG Germany, which is one of the largest dry-bulk shipping companies in the world.
Shares of Tata Power closed Friday's trade at Rs 41.75 apiece, up 1.58 per cent, on the BSE. The stock hit an intraday high of Rs 42.10 after opening lower at Rs 39 against previous closing price of Rs 41.10.
By Chitranjan Kumar