Tata Power Company’s very own will sell 3 ships to Germany. Singapore-based Trust Energy Resources Pvt Ltd is a full subsidiary of Tata. It will sell the ships to German company Oldendorff Carriers GmbH & Co. KG. Furthermore, the selling deal will result in about 212.76 Million US Dollars. Since, the sale is subject to necessary regulatory approvals. The deal is expected to be concluded in the next three to four weeks. The vessels are called MV Trust Agility, MV Trust Integrity and MV Trust Amity. Also, Tata Power said that it plans to pursue an asset-light model for the company’s shipping requirements. And the sale proceeds will be used towards reducing the debt as part of the overall restructuring plan of the company.
“The sale of our shipping assets announced today is in line with our long term plans. To reduce debt and raise funds for our future growth plans. These include expanding our presence in the renewable energy business. The sale is also part of the restructuring within Tata Power. In order to, chalk out the roadmap for growth over the next decade.” Said Praveer Sinha, CEO & MD, Tata Power. However, the sale includes existing long-term contracts. That associate with the ships with Oldendorff Carriers GmbH & Co. KG Germany. Hence, it is one of the largest dry-bulk shipping companies in the world.
Firstly, the deal will clear debts. Secondly, Tata Power can terminate useless capital like the ships. Since, they cost a lot for maintenance and rent keeping. Lastly, it has said that diplomatic relations will bring in more deals for future.
