Tata Power Spends Rs 830 Crore For 40% Stake In Khorluchhu Hydro Power
The firm's Board of Directors decided to terminate the Global Depository System program and its engagement with Citibank.
A hydro power project. (Photo on Unsplash)
Tata Power Co. is set to acquire a 40% stake in Khorlochhu Hydro Power Ltd. for approximately Rs 830 crore, according to an exchange filing posted on the BSE on Tuesday.
KHPL will become an associate company of Tata Power after the acquisition. The acquisition will take place through a cash consideration in one or more tranches, for which a share purchase agreement will also be executed between the company and the existing shareholder of KHPL. The first tranche is tentatively to be completed within six months.
The firm will work on the development of a 600 MW Khorlochhu Hydro Power Project in Bhutan, with a total investment of Rs 6,900 crore.
"This project will support Tata Power to accelerate its clean and green energy transition," the company said.
The firm will partner with Druk Green Power Corp. to develop 600 MW.
Tata Power Shutters Global Depository Shares
Tata Power's Board of Directors considered and approved the termination of their Global Depository Shares programme due to no activity for many years.
The firm issued GDSs in 1994, with Citibank having been appointed as the exclusive depository for this programme, with the same being listed on the Luxembourg Stock Exchange.
"Considering that there has been no activity for the past several years and this will simplify the company’s financial reporting requirements and reduce administrative costs, it has been decided to terminate the GDS program and its engagement with Citibank," the company said in the filing.
The company will implement the necessary measures to terminate the GDS programme and its associated elements. As a result, the GDSs will be removed from the Luxembourg Stock Exchange.
