Tata Power exits defense business by selling to group company
Tata Power Company has announced the sale of its defense business to a group company, Tata Advance Systems, at an enterprise value of Rs 2,230 crore.
The Tata group power utility said that the sale of the business is a part of the company’s plan to monetize its non-core assets and improve the balance sheet.
Tata Power will receive Rs 1,040 crore at the time of deal closing and the balance payment of Rs 1,190 crore will be received only on achieving certain milestones.
“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,” said Anil Sardana, CEO & Managing Director, Tata Power.
Strategic Engineering Division (SED) is a non-core defence electronics division of the company, which designs, develops, produce and supplies life cycle support for mission critical defence systems. The key products include manufacturing and assembling missile launchers, electronic warfare, night vision systems and gun systems.
Earlier this week, Tata Power’s board approved the sale of its holding in Tata Communications and Panatone Finvest to Tata Sons and its affiliates for Rs 2,150 crore.
The Tata group power utility said that the sale of the business is a part of the company’s plan to monetize its non-core assets and improve the balance sheet.
Tata Power will receive Rs 1,040 crore at the time of deal closing and the balance payment of Rs 1,190 crore will be received only on achieving certain milestones.
“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,” said Anil Sardana, CEO & Managing Director, Tata Power.
Strategic Engineering Division (SED) is a non-core defence electronics division of the company, which designs, develops, produce and supplies life cycle support for mission critical defence systems. The key products include manufacturing and assembling missile launchers, electronic warfare, night vision systems and gun systems.
Earlier this week, Tata Power’s board approved the sale of its holding in Tata Communications and Panatone Finvest to Tata Sons and its affiliates for Rs 2,150 crore.