Tata Power Company (TPCL) subsidiary Trust Energy Resources Pte Ltd (TERPL) in Singapore has signed an agreement to sell three ships to Germany-based Oldendorff Carriers for $212.76m.
The sale of the three Capesize bulk carriers MV Trust Agility, MV Trust Integrity and MV Trust Amity is expected to complete in three to four weeks after the receipt of regulatory approvals.
TERPL expects the deal to lead to an asset-light model for the company’s shipping requirements. Additionally, the proceeds from the sale will be used to decrease the debt for the company’s overall restructuring plan.
Tata Power CEO and MD Praveer Sinha said: “The sale of our shipping assets announced today is in line with our long-term plans to reduce debt and raise funds to invest in our future growth plans, including expanding our presence in the renewable energy business. The sale is also part of the restructuring within Tata Power to chalk out the roadmap for growth over the next decade.”
Oldendorff Carriers CEO and president Peter Twiss added: “The deal is a testament to our customer commitment. We appreciate very much our relationship with Tata Power and we are pleased to extend it further.
“The Tata group is one of the most respected companies in the world and it is great to be part of reaching their strategic objectives. At the same time, we are strengthening even further our trades in / out of India.
“We see India as one of the drivers for the years to come for the dry bulk market and we want to be part of that growth.”
The deal also includes the current long-term contracts related to ships with Oldendorff Carriers.
MV Trust Amity has been in charter with Oldendorff Carriers for four years since it was delivered by Yangzijiang Shipyard.
In September last year, Oldendorff Carriers placed an order with technology company ABB to supply two new-build dry bulk carriers with Azipod electric propulsion system for the first time.