September 18 (Renewables Now) - South African coal producer Exxaro Resources Ltd (JSE:EXX) has sealed a deal to take full control of 50%-owned Cennergi (Pty) Ltd, which holds two wind farms totalling 229 MW.
Under the terms of the deal, Exxaro will buy the other 50% stake in Cennergi from Khopoli Investments Ltd, wholly owned by Tata Power Company Ltd (BOM:500400) of India, for about ZAR 1.55 billion (USD 105.8m/EUR 95.6m).
Cennergi is the owner of the 134.4-MW Amakhala Emoyeni wind farm, located near Cookhouse in the Eastern Cape, and the 95.3-MW Tsitsikamma Community wind farm, located close to Tsitsikamm in the same province. Each of the two plants has a 20-year power purchase agreement (PPA) with state power utility Eskom.
Following this transaction, Tata Power will concentrate on renewable power, power distribution and its service-led businesses in India, reinvesting the proceeds of the stake sale in emerging areas with a huge growth opportunity.
“The decision to monetise this South African asset is in alignment with our stated strategy to deleverage the Balance Sheet by divesting sub-optimal size international assets,” said Praveer Sinha, CEO and managing director of Tata Power.
(ZAR 10 = USD 0.682/EUR 0.617)