After year-long negotiations, the Tatas have terminated their near $2- billion investment deal with Malaysian state owned oil and gas company Petroliam Nasional Bhd (Petronas) in Tata Power’s proposed renewable energy infrastructure investment trust (InvIT), said multiple people aware of the development.
The decision to pull out at this advanced stage was conveyed last week after both sides were in the final stages of negotiating a binding term sheet.
The Indian conglomerate has gone back to the drawing board to explore an IPO for the business to capitalise on the frenzied interest of investors for green energy companies around the world, across public and private markets.
As part of the listing plans, Tata Power is likely to create an umbrella entity that will house its operational and pipeline IPP projects along with its micro grid, roof top solar panels and EV charging stations operations.
Tata Group spokesperson declined to comment. Petronas did not respond till press time Sunday.
Last year, Tata Power Renewable Energy Ltd (TPREL) a wholly owned subsidiary of Tata Power Co. Ltd (TPCL)