Tuesday 17 September 2019
Tata Power to exit South African joint venture for $106m
Tata Power is selling its entire 50% stake in a joint venture in South Africa for $106 million (£85m).
Cennergi is a 50:50 joint venture between Exxaro Resources and Tata's subsidiary Khopoli Investments and owns two wind farms in South Africa, which have power purchase agreements (PPAs) with state utility Eskom for 20 years.
The wind farms are: Amakhala Emoyeni - with a generation capacity of 134.4MW and 95% shareholding - and Tsitsikamma Community Wind Farm - with a generation capacity of 95.3MW and 75% shareholding.
The sale will make Exxaro the sole owner of Cennergi.
Praveer Sinha, CEO & Managing Director of Tata Power said: “The decision to monetise this South African asset is in alignment with our stated strategy to deleverage the Balance Sheet by divesting sub-optimal size international assets,.
“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.”
Tata Power is India's largest integrated power company and together with its subsidiaries and jointly controlled entities, has an installed capacity of 10,857MW.
