Tata Power inks deal to sell 30% stake in Indonesian firm

Written by fe Bureau | New Delhi | Updated: Feb 28 2014, 11:07am hrs
Tata Power on Thursday announced sale of its 30% stake in PT Mitratama Perkasa to Indonesias Bakrie Group for around $120 million.

Tata Power through its Indonesian subsidiary PT Sumber Energi Andalan Tbk has signed with the Bakrie Group entity for the sale of its 30% stake in PT Mitratama Perkasa," the private power utility said in a BSE filing.

The transaction is part of the $500 million deal to exit Indonesian coal company PT Arutmin and associated coal trading and infrastructure companies. The deal was announced on January 31.

The aggregate consideration for PT Sumber Energi Andalan Tbks 30% stake in PT Mitratama Perkasa is about $120 million (nearly R744 crore), the filing said.

Prior to the sale, MP (Mitratama Perkasa) would be restructured to hold infrastructure assets in relation to PT Arutmin Indonesia," it added. Tata Power said it targets to complete the sale of PT Mitratama Perkasa in the next two months, subject to getting the requisite approvals. The scrip of Tata Power had closed at R79.45 on the BSE Wednesday. PTI