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Tata Power provides update on sale of 30% stake held by its subsidiaries in PT Arutmin, Indonesia

Capital Market 

To PT Cakrawala Langit Sejahtera (PT CLS) a Bakrie group entity

Company announced that the Company's 100% Subsidiaries viz. Bhira Investments and Bhivpuri Investments (Selling Companies) had signed an agreement for sale and purchase of shares on 30 January 2014 to sell its 30% stake in PT Arutmin, Indonesia and associated trading and infrastructure companies for an aggregate consideration of USD 510 million.

Consequent to certain closing adjustments to the sale consideration and other changes agreed between the parties, the Selling Companies have signed revised definitive agreements with PT Cakrawala Langit Sejahtera (PT CLS) a Bakrie group entity on 28 November 2016.

The sale consideration for PT Arutmin is now revised to USD 246.64 million from the earlier value of USD 390 million, pursuant to closing adjustments relating to certain prior period liabilities, which includes settlement of past claims with Mining Contractor, pursuant to a court order (about USD 80 million as Company's share) and Other Statutory liabilities (about 50 USD million). The consideration is expected to be received in a phased manner over next few years.

With regard to the infrastructure company PT Mitratama Perkasa (PTMP), in which PT Sumber Energi Andalan Tbk (Sumber) holds Company's 30% equity; and Trust Energy Resources Pte. Limited, a 100% subsidiary of the Company (Trust Energy) which holds Sumber, has entered into an agreement with Rwood Resources Ltd., a Bakrie Group Entity, for divestment of 94.61% stake in Sumber. The sale consideration for Infrastructure companies is now revised to USD 154.28 million from the earlier value of USD 120 million pursuant to closing adjustments relating to prior period. The consideration is expected to be received in a phased manner over next few years.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 30 2016. 09:15 IST
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