Tata subsidiary Khopoli sells stake in South African RE developer

Wholly owned Tata Power subsidiary Khopoli has sold its entire 50% stake in Cennergi Private, a joint venture with South African coal producer Exxaro Resources, to the latter firm for ZAR1,550m ($84m). Cennergi is the majority shareholder in two South African wind farms: the 14.4 MW Amakhala Emoyeni and the 95.3 MW Tsitsikamma Community project.

Tata Power has announced that its wholly-owned subsidiary Khopoli has completed the sale of the company’s entire stake in Cennergi Private Limited to Exxaro Resources Limited for ZAR 1,550 million (~$84.25 million) and normal working capital and other adjustments.

Cennergi Private Limited was a 50:50 joint venture between Exxaro, a coal producer in South Africa, and Khopoli, a 100% subsidiary of Tata Power. As per the deal, Exxaro has acquired the 50% shareholding of Khopoli and will now have full ownership of Cennergi.

Cennergi has two wind farms in South Africa, namely, Amakhala Emoyeni (14.4 MW with 95% shareholding) and Tsitsikamma Community Wind Farm (95.3 MW with 75% shareholding). Both projects have a power purchase agreement with the state power company Eskom for 20 years.

Commenting on the sale, Praveer Sinha, CEO and Managing Director, Tata Power, said, “The proceeds from such sale would be re-invested in emerging areas where there is a huge growth opportunity. The company will focus on renewable power, power distribution, and service-led businesses in India, which will bring in greater value and help us align with the emerging consumer needs.”