Tata Power cancels $300 mn stake sale with Olympus Cap

Tata Power today said it has terminated agreement to raise $300 million (about Rs 1,350 crore) through selling 14-15 per cent stake in its two coal SPVs to the private equity firm Olympus Capital Holdings Asia.

In June last year, the company had entered into an agreement to sell 14-15 per cent stake in its special purpose vehicles Bhira Investments Limited and Bhivpuri Investments Limited, through issue of shares with differential rights to Olympus Capital, for a consideration of Rs 1,350 crore.

"The investment was subject to completion of certain conditions precedent, as specified in the Investment Agreement. The conditions precedent as stated therein were not fulfilled by the Long Stop Date," Tata Power said in a filing to Bombay Stock Exchange.

The filing added that the company and both of its coal SPVs have exercised their rights under the Investment Agreement and have terminated the same on January 01, 2011.

Following the announcement, shares of Tata Power were trading nearly one per cent higher at Rs 1,378.70 on BSE.