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Tata Power gains on stake sale in Indonesian coal miner

The company said it has signed an option deal to sell a 5% in coal miner PT KPC to get additional cash flow as well as to reduce its consolidated debt.

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SI Reporter Mumbai
Last Updated : Jul 07 2014 | 9:24 AM IST
Tata Power Company is trading higher by 2.5% at Rs 110 on BSE after the company said it has signed an option deal to sell a 5% in coal miner PT Kaltim Prima Coal (KPC) to get additional cash flow as well as to reduce its consolidated debt.

Tata Power said the 5% stake in the Indonesian coal miner is valued at about $250 million (approx Rs 1,500 crore), adding that if the option is exercised it would still hold a 25% stake in PT Kaltim Prima Coal.

Tata Power, part of India's salt-to-steel Tata conglomerate, also signed an option deal to sell its entire 30% stake in power infrastructure companies related to KPC to the Bakrie Group, the company said in a statement late Friday.

A combined around 810,000 shares changed hands on the counter in early morning deals on the BSE and NSE.
 

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First Published: Jul 07 2014 | 9:22 AM IST

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