[South Africa] Exxaro Resources buys out Tata Power’s shares in Cennergi joint venture
Khopoli Investments, a 100% subsidiary of Tata Power completed the sale of the Company’s entire stake in Cennergi, a South African joint venture to Exxaro Resources, for an amount of ZAR 1,550 million and normal working capital and other adjustments.
Cennergi was a 50:50 joint venture between Exxaro Resources and Khopoli Investments, a wholly owned subsidiary of The Tata Power Company. Exxaro is a leading South African coal producer. Exxaro has acquired the entire 50% shareholding of Khopoli Investments and will now have 100% ownership of Cennergi.
Cennergi owns two wind farms; Amakhala Emoyeni, 134.4 MW with 95% shareholding and Tsitsikamma Community Wind Farm, 95.3 MW with 75% shareholding in South Africa. Both projects have 20-year Power Purchase Agreement (PPA) with the State power utility Eskom.
''The decision to monetise this South African asset is in alignment with our stated strategy to deleverage the Balance Sheet by divesting sub-optimal size international assets,'' said Mr Praveer Sinha, CEO & Managing Director, Tata Power.
''The proceeds from such sale would be re-invested in emerging areas where there is a huge growth opportunity. The Company will focus on renewable power, power distribution and service-led businesses in India which will bring in greater value and help us align with the emerging consumer needs,'' he added.
ABSA Bank was the sole advisor to Khopoli for the transaction.