The Tata Power Company’s Singapore arm has entered into definitive agreements with Oldendorff Carriers GmbH & Co of Germany for the sale of three ships at an estimated consideration of $212.76 million, the company said Friday.
The sale is a part of the Tata group utility’s strategy to divest non-core operations to pare debt and become asset light.
“The sale of our shipping assets announced today is in line with our long term plans to reduce debt and raise funds to invest in our future growth plans, including expanding our presence in the renewable energy business. The sale is also part of the restructuring within Tata Power to chalk out the roadmap for growth over the next decade,” said Chief Executive Officer and Managing Director Praveer Sinha.
Tata Power Company hopes to raise about Rs 3,000 crore from divestment of non-core operations and restructuring the renewable energy business with an aim to cut debt by at around 40 per cent to Rs 25,000 crore this financial year,