Tata Power: Sale value of Arutmin, other firms revised down

By Romel S. Gurky

India?s Tata Power said that its subsidiaries Bhira Investments Limited and Bhivpuri Investments Limited (Selling Companies) had on November 28 signed revised definitive agreements with PT Cakrawala Langit Sejahtera (CLS), a Bakrie Group company, for the sale of 30 percent stake in Indonesian coal miner PT Arutmin Indonesia and associated trading and infrastructure companies.

Tata Power said in a statement on Wednesday that the sale consideration for PT Arutmin is now revised to US$246.64 million from the earlier value of $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 $80 million as company's share) and other statutory liabilities (about $50 million).

The consideration is expected to be received in a phased manner over next few years, it added.

Tata Power said in the statement that with regard to the infrastructure company PT Mitratama Perkasa (PTMP), in which PT Sumber Energi Andalan Tbk (Sumber) holds company's 30 percent equity; and Trust Energy Resources Pte. Limited, a 100 percent 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 percent stake in Sumber.

The sale consideration for Infrastructure companies is now revised to $154.28 million from the earlier value of $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.

Tata Power first signed an agreement with the Indonesian Bakrie Group in February of 2014 to sell its stake in Arutmin and associated trading and infrastructure companies to the latter for a total consideration of about $500 million, subject to certain closing adjustments.

Editing by Reiner Simanjuntak