India's Tata Steel has informed the Indian stock exchange it has “… executed definitive agreements to acquire 74% equity shares of Bhubaneshwar Power Private Ltd. (BPPL) from JL Power Ventures Private Ltd.”
This gives the steelmaker 100% ownership of the power generator in which it had previously held 26%, together with its 100% subsidiary Tata Alloys.
BPPL owns a 135-megawatt (2, 67.5 MW facilities) thermal power plant at Anantapur village in Cuttack, district of Odisha.
The acquisition provides an opportunity for Tata Steel to increase its captive source of power to meet its growing demand, the steelmaker said in its bourse filing.
The transaction involved will be a cash deal totaling $39.6 million, Tata confirms. The acquisition should be completed in roughly two months from the filing date of Nov. 30, Kallanish Energy’s sister publication, Kallanish, finds.