Tata Power cancels coal stake sale pact

Tata Power on Monday said it has terminated an agreement to raise $300 million (about R1,350 crore) through the sale of 14-15% stake in its two coal SPVs (special purpose vehicles) to private equity firm Olympus Capital Holdings Asia. HT reports.

Tata Power on Monday said it has terminated an agreement to raise $300 million (about R1,350 crore) through the sale of 14-15% stake in its two coal SPVs (special purpose vehicles) to private equity firm Olympus Capital Holdings Asia.

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The company had entered into an agreement in June to sell 14-15% stake in SPVs Bhira Investments Ltd and Bhivpuri Investments Ltd, through the issue of shares with differential rights to Olympus Capital, for R1,350 crore.

“The investment was subject to completion of certain conditions precedent, as specified in the Investment Agreement. The conditions precedent as stated therein were not fulfilled by the Long Stop Date,” Tata Power said in a filing to Bombay Stock Exchange.