Tata Power JV Wins Bid To Buy South East UP Power Transmission Co – EQ Mag Pro
Following a successful bid, Tata Power’s counter climbed to a high of Rs 235.85 as against Rs 229.25 at a previous close on the National Stock Exchange.
Tata Power’s Singapore-based JV Resurgent Power Ventures won a bid to acquire the stressed asset of South East UP Power Transmission Company through its resolution process under the Insolvency and Bankruptcy Code.
The resolution professional of South East UP Power Transmission Company Limited (SEUPTCL), issued a letter of intent selecting Resurgent Power Ventures Pte Ltd as an successful resolution applicant under IBC proceedings.
The transaction was a part of a stressed asset resolution process that was initiated by a resolution professional through a competitive bidding process. The bid was not disclosed by Tata Power that was offered by Resurgent Power Ventures.
Tata Power has taken over the South East UP Power Transmission Company after offering over Rs 3,200 crore to the creditors of the bankrupt asset.
Resurgent Power will invest equity and raise debt in SEUPTCL at a total enterprise value of more than Rs 6000 crore for implementing and commissioning the elements timely and turnaround assets that would maximize value for all stakeholders.
Four years ago, Tata Steel snapped up Bhushan Steel under insolvency proceedings. Adani Transmission, Sterlite Power, REC and Power Grid Corp had shown interest in South East UP Power Transmission.
Speaking on the development of acquisition, Dr.Praveer Sinha, CEO MD, Tata Power, said “Tata Power partnering with investors in Resurgent Power had bid for acquiring SEUPTCL and is delighted to have been selected as the successful bidder by the Resolution Professional for acquiring the project under IBC proceedings. This asset will bring significant value to our transmission business and diversify the Resurgent Power portfolio after the successful turnaround of the 1980 MW Prayagraj Power Plant and acquisition of System Strengthening Scheme in the Northern Region.”
Tata Power posted a 74 per cent rise in its consolidated net profit to Rs 552 crore for December quarter backed by high revenues.
Source: PTI
