Tata Power completes sale of three ships for $213 mln

The sale proceeds will be used towards reducing the debt as well as to fund future growth plans.

Singapore-based Trust Energy Resources (TERPL), a wholly-owned subsidiary of the Tata Power, has announced the completion of sale of its three ships viz. MV Trust Agility, MV Trust Integrity and MV Trust Amity to Oldendorff Carriers GmbH & Co. KG, Germany for a consideration of $212.76 million.

TERPL will now cater to the shipping requirements of the company's imported coal-based Coastal Gujarat Power Limited (CGPL) plant at Mundra under an asset light model which will help unlock significant value and returns for the company's shareholders. The sale proceeds will be used towards reducing the debt as well as to fund future growth plans.

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. This is the second asset sale by Tata Power in recent months after the divestment in Cennergi in South Africa.

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."

Shares of Tata Power were up 0.69% at Rs 50.75.

The company's consolidated net profit surged 176.7% to Rs 474.70 crore on 8.4% fall in net sales to Rs 6,620.80 crore in Q4 March 2020 over Q4 March 2019.

Tata Power Co. is India's largest integrated power company and, together with its subsidiaries & jointly controlled entities, has an installed/ managed capacity of 12,742 MW.

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