Tata Power to sells its Defense business to Tata Advanced Systems
Tata Power has announced that its Board has approved the sale of its Defense business to Tata Advance Systems Limited, a wholly owned subsidiary of Tata Sons at an enterprise value of Rs. 2,230 crore (out of which Rs. 1,040 crore payable at the time of closing and Rs. 1,190 crore payable on achieving certain milestones), subject to Government & other approvals. This is as part of the company’s plan to monetize its non-core assets and improve the balance sheet. This will be subject to Shareholders approval.
Speaking on this sale, Mr. Anil Sardana, CEO & Managing Director, Tata Power said “SED is a non-core business division of Tata Power. The Company has been working on charting its next phase of growth, for which monetization of non-core assets is a critical step. This sale will also help in reduction of leverage.”
@EPC World Media