Tata Power to sell 3 ships to German firm Oldendorff for $213mn
The sale of the three ships, MV Trust Agility, MV Trust Integrity and MV Trust Amity, is expected to be concluded in July.
Tata Power subsidiary Trust Energy Resources Pte Ltd (TERPL) will sell three ships to German company Oldendorff Carriers GmbH & Co. KG for an estimated cost of $212.76 million. The transaction also includes a long-term freight contract with Oldendorff Carriers.
The sale of the three capesize ships, MV Trust Agility, MV Trust Integrity and MV Trust Amity, is expected to be concluded in July and is subject to necessary regulatory approvals, the Tata Group company said in a release.
After the sale, Tata Power will pursue an asset-light model for its shipping requirements, and the sale proceeds will used to cut debt as part of the overall restructuring plan of the company.
Praveer Sinha, CEO & MD, Tata Power, said: “The sale of our shipping assets 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.”