Orient Green Power cancels equity sales deed with Singapore firm

Deal stymied by a cooperative body, which exercises first right to buy shares under a BOOT agreement

Orient Green Power Company Limited has said that a Memorandum of Understanding (MoU) signed with Sindicatum Captive Energy Singapore Pte Limited, to divest its entire stake held in Orient Green Power (Maharashtra) Private Limited (OGPML), stands cancelled. OGPML operates a 20 Mw co-generation power project in Kolhapur, Maharashtra.

The company, in a regulatory filing said that while plans were to sell 100 per cent equity shares held by OGPML to the Singapore-based company, Padmashri Dr D Y Patil Sahakari Sakhar Karkhana Ltd (society) exercised its option of first right to purchase the shares of OGPML as per the terms of Build, Own, Operate and Transfer (BOOT) agreement signed with it.

Earlier, the company said that it has been supplying electricity and steam to the Society against delivery by the Society of bagasse, fresh water, land on lease and sugarcane and the company had obligation to transfer the facility to the Society after 13 years from the date of commencement of commercial production.

The Board of Directors of the company on November 6, 2015, approved to enter into an MoU with Sindicatum Captive Energy, while the deal size was not revealed.