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Tata Power to sell three ships to German company Oldendorff Carriers for $212.76 million

The transaction also includes a long-term freight contract with Oldendorff Carriers, one of the largest dry-bulk shipping companies in the world.

June 12, 2020 / 04:24 PM IST
 
 
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Singapore-based Trust Energy Resources Pte Ltd (TERPL), a subsidiary of Tata Power, has has entered into definitive agreements with Germany-based Oldendorff Carriers for sale of three ships for an estimated $212.76 million (about Rs 1,613 crore).

Singapore-based TERPL completed signing of the agreements with Oldendorff Carriers GmbH & Co. KG on June 11, Tata Power said in a statement.

The transaction also includes a long-term freight contract with Oldendorff Carriers, one of the largest dry-bulk shipping companies in the world.

The sale of the three capesize ships -- MV Trust Agility, MV Trust Integrity and MV Trust Amity -- is expected to be concluded by July 15, 2020, subject to necessary regulatory approvals, it added.

Capesize ships are the largest dry cargo ships.

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The objective of the transaction is to have an asset-light model for the shipping requirements of the company. The sale proceeds will be used towards reducing debt as part of the overall restructuring plan of the firm, it said.

Tata Power CEO and MD Praveer Sinha said, "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," he added.
PTI

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