Tata Power to acquire 10% stake in Australia's Geodynamics

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Tata Power Company on Thursday said it would acquire 10 per cent stake in Australia's Geodynamics Ltd for approximately Rs 165 crore.

TPC would acquire 294 lakh ordinary shares of the firm, equivalent to 10 per cent of the increased share capital after allotment by Geodynamics, TPC said in a release in Mumbai.

"The shares will be acquired by TPC at an issued price of AUS 1.5 dollar per share, entailing a total investment of Aus 44.1 million (approx. Rs 165 crore)," the release said.

The stake acquisition would be done by either Tata Power itself or through one or more of its subsidiaries in India and abroad, TPC said, adding that post-acquisition, it would have one representative on Geodynamics' Board.

"This strategic partnership not only strengthens our renewable portfolio but also creates opportunities to get a foothold in the growing renewable energy market in Australia," TPC Managing Director Prasad Menon said.

"We look forward to the synergistic opportunities that the alliance presents us," he added.

Geodynamics is an industry leader in Enhanced Geothermal Systems with a market capitalisation of over AUS 350 million dollar as on August this year. It has geothermal exploration interests in three Australian states including the license for exploring 2,000 sq km of area in Cooper Basin, the release said. Geothermal is the natural heat found within the earth.