TATA POWER COMPLETES SALE OF DEFENSE BUSINESS.
The Tata Power Company Limited has completed the sale of its Defense business on 31st Oct, 2020 to Tata Advanced Systems Limited, a wholly owned subsidiary of Tata Sons Pvt Ltd. The sale was completed as per a Scheme of Arrangement, which was approved by National Company Law Tribunal at Mumbai and Hyderabad in Dec'19
The Tata Power Company Limited has completed the sale of its Defense business on 31st Oct, 2020 to Tata Advanced Systems Limited, a wholly owned subsidiary of Tata Sons Pvt Ltd. The sale was completed as per a Scheme of Arrangement, which was approved by National Company Law Tribunal at Mumbai and Hyderabad in Dec'19 & Mar'20 respectively. The Company is expected to receive Enterprise Value of Rs 1,076 Crore as upfront payment (Rs 1,040 Crore as per Agreements which was revised in line with closing adjustments). Balance consideration is subject to completion of achieving certain milestones specified in the agreements. “Sale of Defense business is in line with our commitment to divest non-core assets & businesses” said Praveer Sinha, CEO & Managing Director, Tata Power. “The sale proceeds will help Company to reduce leverage and increase focus in the core business areas like renewable generation, distribution and new service-led businesses which will bring greater value for our shareholders”.
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