Tata Power to sell PT Arutmin stake for $247 mn

New Delhi: Tata Power will sell its 30 percent stake in Indonesia-based coal company PT Arutmin for a sharply lower consideration of USD 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 USD 246.64 mn (million) from the earlier value of USD 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 USD 80 mn as company's share) and other statutory liabilities (about USD 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 percent 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 percent stake in PT Arutmin, Indonesia and associated trading and infrastructure companies for an aggregate consideration of USD 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 percent equity and Trust Energy Resources Pte Ltd, a 100 percent 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 percent stake in Sumber.

The sale consideration for infrastructure companies is now revised to USD 154.28 million from the earlier value of USD 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.