Singapore-based Trust Energy Resources Pte Ltd (TERPL), a fully-owned subsidiary of The Tata Power Co. Ltd (TPCL) has entered into definitive agreements with Oldendorff Carriers GmbH & Co. KG, Germany for the sale of three ships at an estimated consideration of $212.76 million, the company said in a release on Friday.
The sale of the three ships, MV Trust Agility, MV Trust Integrity and MV Trust Amity, currently owned by TERPL is expected to be concluded in the next three to four weeks and is subject to necessary regulatory approvals.
The objective of the transaction is to have an asset-light model for the shipping requirements of the company and the sale proceeds will be used towards reducing the debt as part of the overall restructuring plan of the company.
Praveer Sinha, CEO & Managing Director, Tata Power 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.”
The sale includes existing long-term contracts associated with the ships with M/s. Oldendorff Carriers GmbH & Co. KG Germany which is one of the largest dry-bulk shipping companies in the world.