Khopoli Investments, a 100 per cent subsidiary of Tata Power, completed the sale of the company’s entire stake in Cennergi, a South African joint venture to Exxaro Resources, for an amount of ZAR 1,550 million and normal working capital and other adjustments.
Cennergi (Pty) was 50:50 joint venture between Exxaro Resources and Khopoli Investments, a wholly owned subsidiary of The Tata Power Company. Exxaro is a leading South African coal producer. Exxaro has acquired the entire 50 per cent shareholding of Khopoli Investments and will now have 100 per cent ownership of Cennergi.
Cennergi owns two wind farms — Amakhala Emoyeni (134.4 MW with 95 per cent shareholding) and Tsitsikamma Community Wind Farm (95.3 MW with 75 per cent shareholding) — in South Africa. Both projects have 20-year Power Purchase Agreement (PPA) with the state power utility Eskom.
“The decision to monetise this South African asset is in alignment with our stated strategy to deleverage the balancesheet by divesting sub-optimal size international assets,” said Praveer Sinha, CEO & Managing Director, Tata Power.
“The proceeds from such sale would be re-invested in emerging areas where there is a huge growth opportunity. The company will focus on renewable power, power distribution and service-led businesses in India which will bring in greater value and help us align with the emerging consumer needs,” he added.
