Bhubaneswar: The takeover of CESU by Tata Power Company Ltd (TPCL) was formalised on Thursday with Odisha Electrictiy Regulatory Commission giving its approval to the deal.
The TPCL had quoted a purchase price of Rs. 350 crore in its financial bid in response to the request for proposal (RFP) for 100 per cent equity in the special purpose vehicle (SPV) formulated for the deal.
As per the commission order, TPCL is required to pay 51 per cent of the purchase price. Though it was earlier decided that CESU shall transfer the utility to TPCODL on April 1, the Commission has decided that the new date of vesting of utility CESU to TPCODL on June 1.
All stakeholders have agreed that TPCL and GRIDCO shall maintain 51 per cent and 49 per cent shareholding respectively at all times and any future equity investment from
GRIDCO in TPCODL shall be either in form of cash, kind or any other consideration as decided by GRIDCO in accordance with the shareholders agreement.