Tata Power signs pact to sell 30% stake in Indonesian firm.

Tata Power recently announced sale of its 30 per cent stake in PT Mitratama Perkasa to Indonesia's Bakrie Group for around $120 million.

'Tata Power through its Indonesian subsidiary PT Sumber Energi Andalan Tbk has signed with the Bakrie Group entity for the sale of its 30 per cent stake in PT Mitratama Perkasa,' the private power utility said in a BSE filing.

The transaction is part of the $500 million deal to exit Indonesian coal company PT Arutmin and associated coal trading and infrastructure companies. The deal was announced on January 31.

The aggregate consideration for PT Sumber Energi Andalan Tbk's 30 per cent stake in PT Mitratama Perkasa is about $120 million (nearly Rs. 744 crore), the filing said.

'Prior to the sale, MP (Mitratama Perkasa) would be restructured to hold infrastructure assets in relation to PT Arutmin Indonesia,' it added.

Tata Power said it targets to complete the sale of PT Mitratama Perkasa in the next two months, subject to getting the requisite approvals.

Shares of Tata Power closed at Rs. 79.45 apiece on the BSE recently.

HBL