Tata Power Scrapped Deal Signed with Olympus

Tata Power on 3 January 2011 declared it terminated a pact to sell around 15% stake in a special purpose vehicles that owns its holding in Indonesian coal mines, to private equity firm Olympus Capital Holdings Asia. Tata Power had in June 2010 declared its plans to sell part of its holdings in two special purpose vehicles Bhira Investment and Bhivpuri Investment for $ 300 million (around.13.40 billion). It was proposed that stake would be sold through shares with differential voting rights and no dividends. It had not disclosed how much it planned to sell in each SPV. The stake sale proceeds as was decided would then be used for reducing debt and financing future acquisition of fuel resources.

Tata Power currently has a total operational capacity of about 3000 megawatts. Tata Power had in 2007 paid $1.3 billion to buy a 30% stake in PT Kaltim Prima Coal and PT Arutmin Indonesia to secure coal for its growing demand.