Tata Power International Pte. Limited (TPIPL), a Singapore Company & wholly owned subsidiary of Tata Power , has signed an agreement with KS Orka Renewables for the sale of its 50% stake in OTP Geothermal.
The aggregate cash consideration for TPIPL’s 50% stake is US$30 million.
OTP, a 50:50 joint venture with Origin Energy Limited, holds a 95% interest in Indonesia’s PT Sorik Marapi Geothermal Power (SMGP).
SMGP is currently pursuing development of 240 MW Sorik Marapi Geothermal Power Project in North Sumatra. The transition is expected to benefit the project development.
TPIPL has significant investments in Indonesia and remains committed to development of Indonesian power and energy sector. The company’s other investments in Indonesia include investments in PT Kaltim Prima Coal, PT Arutmin Indonesia and PT Baramulti Suksessarana Tbk.
The divestment of the TPIL’s interest in OTP is consistent with the company’s strategy to constantly review its businesses and restructure, as required, to deliver long term value to shareholders.
The sale is subject to customary Conditions Precedent (CPs) including approvals from relevant Indonesian government authorities.