Tata Power unit signs agreement for sale of stake in OTP Geothermal
Saturday, April 9 2016 - 07:14 AM WIB
Tata Power International Pte. Limited (TPIPL), a Singapore company and wholly owned subsidiary of Tata Power signed Friday an agreement with KSOrka Renewables Pte. Ltd. for the sale of its 50 percent stake in OTP Geothermal Pte.Ltd. (OTP).The aggregate cash consideration for TPIPL?s 50 percent stake is US$30million.
Tata Power said in a statement that OTP, a 50:50 joint venture with Origin Energy Limited, holdsa 95 percent interest in Indonesia?s PT Sorik Marapi Geothermal Power (SMGP).SMGP is currently pursuing development of 240 MW Sorik Marapi Geothermal Power Project in North Sumatra. The transition is expected to benefit the project development.
"The company has significant investments in Indonesia and remains committed to development of Indonesian power and energy sector" Tata Power said. The company?s other investments in Indonesia include investments in coal firma PT Kaltim Prima Coal, PT Arutmin Indonesia and PT Baramulti Suksessarana Tbk.
The divestment of the company?s interest in OTP is consistent with the company?s strategy to constantly review its businesses and restructure, as required, to deliver long term value to shareholders.
The sale is subject to customary Conditions Precedent (CPs) including approvals from relevant Indonesian government authorities. The company targets to complete the sale in next three months subject to satisfaction of the conditions stated above.
Editing by Reiner Simanjuntak