Representational Image
Representational Image

Singapore-based Trust Energy Resources Pte Ltd (TERPL), a fully-owned subsidiary of Tata Power, has entered into an agreement with Oldendorff Carriers GmbH & Co. KG, Germany for the sale of three ships at an estimated cost of USD 212.76 million. However, this deal is subject to regulatory approvals.

MV Trust Agility, MV Trust Integrity and MV Trust Amity are currently owned by TERPL. The sale of three ships is expected to be concluded in the next three to four weeks.

The objective of the transaction is to have an asset-light model for the shipping requirements of the company and the sale proceeds will be used towards reducing the debt as part of the overall restructuring plan of the company.

Praveer Sinha, CEO and MD, Tata Power said, “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.”

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.

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