MUMBAI: Singapore-based Trust Energy Resources Pte Ltd (TERPL), a fully-owned subsidiary of Tata Power Company Ltd (TPCL), will sell three ships to German company Oldendorff Carriers GmbH & Co. KG for an estimated cost of $212.76 million.
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 company said in a release.
Tata Power had said in the past that it plans to pursue an asset-light model for the company’s shipping requirements and the sale proceeds will be used towards reducing the debt as part of the overall restructuring plan of the company.
“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," said Praveer Sinha, CEO & MD, Tata Power.
The sale includes existing long-term contracts associated with the ships with Oldendorff Carriers GmbH & Co. KG Germany which is one of the largest dry-bulk shipping companies in the world.