Mumbai : Tata Power on Monday said that it has completed the sale of its Defense business to Tata Advanced Systems Limited (TASL). TASL is a wholly owned subsidiary of Tata Sons Pvt. Ltd.
“The sale was completed as per a Scheme of Arrangement, which was approved by National Company Law Tribunal at Mumbai and Hyderabad in December’19 & March’20 respectively. The sale of Defence business is part of the Company’s ongoing strategic plan to monetize its non-core assets and reduce overall leverage” the company has informed the stock markets.
The Company is expected to receive Enterprise Value of Rs. 1,076 crore as upfront payment (Rs. 1,040 crore as per Agreements which was revised in line with closing adjustments). Balance consideration is subject to completion of achieving certain milestones specified in the agreements.
“Sale of Defence business is in line with our commitment to divest non-core assets & businesse. The sale proceeds will help the Company to reduce leverage and increase focus in the core business areas like renewable generation, distribution and new service-led businesses which will bring greater value for our shareholders” said Mr. Praveer Sinha, CEO & Managing Director, Tata Power.
Strategic Engineering Division (SED) is a non-core defence electronics division of the Company, engaged in business of indigenous design, development, production, integration, supply and life cycle support of mission critical defence systems.