Tata Power arm to sell ships for $212 million, reduce debt burden
Jun 12, 2020
Mumbai (Maharashtra) [India], June 12 : Singapore-based Trust Energy Resources Pte Ltd (TERPL), a fully-owned subsidiary of Tata Power Company Ltd (TPCL), said on Friday it has entered into definitive agreements with German Oldendorff Carriers GmbH for the sale of three ships at an estimated consideration of 212.76 million dollars.
The sale of the three ships, MV Trust Agility, MV Trust Integrity and MV Trust Amity, currently owned by TERPL is expected to be concluded in the next three to four weeks and is subject to necessary regulatory approvals.
The objective of the transaction is to have an asset-light model for the shipping requirements of the company and the sale proceeds will be used towards reducing the debt as part of the overall restructuring plan of the company.
"The sale of our shipping assets is in line with our long term plans to reduce debt and raise funds to invest in our future growth plans, including expanding our presence in the renewable energy business," said CEO and Managing Director Praveer Sinha.
"The sale is also part of the restructuring within Tata Power to chalk out the roadmap for growth over the next decade," he said in a statement.
The sale includes existing long-term contracts associated with the ships with Oldendorff Carriers GmbH which is one of the largest dry-bulk shipping companies in the world.
