Tata Power Subsidiary to exit 50% ownership of Cennergi

Khopoli Investments Ltd. (a 100% subsidiary of Tata Power) has executed a Share Purchase Agreement with Exxaro Resources Ltd. for the divestment of the company’s entire 50% stake in Cennergi, a South African joint venture, for an amount of ZAR1,550 million (US$106 million).

The agreement will be subject to, amongst others, normal regulatory approvals customary for this type of transaction. Cennergi (Pty) Ltd. is a 50:50 joint venture between Exxaro Resources Ltd. and Khopoli Investments Ltd.

Under the Agreement, Exxaro will acquire the entire 50% shareholding of Khopoli Investments Ltd. The Agreement is to be completed by Q3 2020. Post this transaction, Exxaro will have 100% ownership of Cennergi.

Cennergi in turn owns two wind farms in South Africa - Amakhala Emoyeni (with a generation capacity of 134.4 MW and 95% shareholding) and Tsitsikamma Community Wind Farm (with a generation capacity of 95.3 MW and 75% shareholding). Each project has a 20-year Power Purchase Agreement (PPA) with the State power utility Eskom.