Tata Power has decided to sell its 30 per cent stake in Indonesia-based coal arm PT Arutmin and related infrastructure companies for a lower consideration of $ 400.92 million after entering into revised pacts with buyers.
The company’s 100 per cent subsidiaries — Bhira Investments Ltd and Bhivpuri Investments Ltd (selling companies) — had signed an agreement in January 2014 to sell 30 per cent stake in PT Arutmin and associated trading and infrastructure companies for an aggregate consideration of $ 510 million.
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“The sale consideration for PT Arutmin is now revised to $ 246.64 million from the earlier value of $ 390 mn, 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 USD 50 million),” Tata Power said in a BSE filing.
“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 filing said. The proceeds are expected to be received in a phased manner over the next few years.
Consequent to certain closing adjustments to the sale consideration and other changes agreed, the selling companies have signed revised definitive agreements with PT Cakrawala Langit Sejahtera (PT CLS), a Bakrie Group entity on November 28, the filing said.
With regard to the infrastructure company PT Mitratama Perkasa, in which PT Sumber Energi Andalan Tbk (Sumber) holds Tata Power’s 30 per cent equity and Trust Energy Resources Pte Ltd, a 100 per cent subsidiary of Tata Power, which holds Sumber, have entered into an agreement with Rwood Resources Ltd for divestment of 94.61 per cent stake in Sumber.