The Tata Power Company Limited has completed the sale of its defense business to Tata Advanced Systems Limited. Tata Advanced Systems Limited is a fully owned subsidiary of Tata Sons, which is the leading systems integration company for delivering weapons from the Tata Group to the Indian security forces. The sale was completed as per a Scheme of Arrangement, approved by the National Company Law Tribunal.
The deal is a part of the strategic plan of the company to reduce overall leverage. The company is expecting Enterprise Value of Rs 1,076 crore as an upfront payment to this deal.
Mr Praveer Sinha, CEO & Managing Director, Tata Power said “Sale of Defense business is in line with our commitment to divest non-core assets & businesses. The sale proceeds will help the company to reduce leverage and increase focus in the core business areas like renewable generation, distribution and new service-led businesses which will bring greater value for our shareholders”.
Strategic Engineering Division (SED) is a non-core defense electronics division of the company, engaged in the business of indigenous design, development, production, integration, supply and life cycle support of mission-critical defense systems. The key products include manufacturing and assembling missile launchers, electronic warfare, night vision systems, and gun systems.
