Tata Power Company Ltd. announced completion of its defence business sale to Tata Advanced Systems Ltd., a wholly owned subsidiary of Tata Sons Pvt. Ltd.
The sale was completed following the approval of National Company Law Tribunal at Mumbai and Hyderabad as per a Scheme of Arrangement.
The company is aimed to receive an enterprise value of Rs 1,076 crore as upfront payment (Rs 1,040 crore as per agreements which were revised in line with closing adjustments).
Balance consideration is subject to completion of achieving certain milestones specified in the agreements. The sale of defence business is part of the company’s ongoing strategic plan to monetize its non-core assets and reduce overall leverage, Tata Power said in a statement.
Praveer Sinha, CEO & MD, Tata Power said, “Sale of defence business is in line with our commitment to divest non-core assets & businesses.”