Tata Power subsidiary to exit South African JV

Tata Power Company’s wholly owned subsidiary, Khopoli Investment is set to divest entire stake in Cennergi in South Africa. The shares of Tata Power reacted negatively and fell by over 1.5 per cent in the Tuesday morning session.

Khopoli Investment executed a Share Purchase Agreement with Exxaro Resources for the divestment of its entire 50 per cent stake held in Cennergi, a South African joint venture, for an amount of ZAR 1550 million (US$ 106 million).

Cennergi is a 50:50 joint venture of Exxaro, a leading South African coal producer, and Khopoli Investment, a wholly owned subsidiary of Tata Power. The agreement is probable to be completed by the third quarter of FY20. Post this transaction, Exxaro will have 100 per cent ownership of Cennergi.

Tata Power Company is India’s largest integrated power company with a growing international presence. The company together with its subsidiaries and jointly controlled entities has presence in all the segments of the power sector viz. Fuel Security and Logistics, Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.

The shares of Tata Power on Tuesday opened at Rs. 64.25 against Monday’s close of Rs. 64.35. At 11:11 hours it was trading at Rs. 63.55, losing 1.24 per cent from its previous close. The stock hit an intraday high of Rs. 64.55 and intraday low was Rs. 63.45. Its 52-week high was Rs. 86.15 and 52-week low was Rs. 50.40 per share on the BSE.