Tata Power To Sell PT Arutmin Stake For $247 Million

New Delhi: Tata Power will sell its 30 per cent stake in Indonesia-based coal company PT Arutmin for a sharply lower consideration of $246.64 million after entering into revised pacts that take into account certain prior liabilities. 

"The sale consideration for PT Arutmin is now revised to $246.64 mn (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 mn as company's share) and other statutory liabilities (about $50 mn)," Tata Power said in a BSE filing. 

The consideration is expected to be received in a phased manner over the next few years.  

The company's 100 per cent subsidiaries -- Bhira Investments Ltd and Bhivpuri Investments Ltd (selling companies) -- had signed an agreement for sale and purchase of shares in January 2014 to sell its 30 per cent stake in PT Arutmin, Indonesia and associated trading and infrastructure companies for an aggregate consideration of $510 million. 

Consequent to certain closing adjustments to the sale consideration and other changes agreed between the parties, 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 (PTMP), 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, a Bakrie Group entity, for divestment of 94.61 per cent stake in Sumber. 

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 consideration is expected to be received in a phased manner over next few years, it added. 

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