Tata Power ends pact with Ideal Energy for thermal power project
Tata Power announced termination of a share purchase agreement (SPA) with Ideal Energy Projects Limited (IEPL) for acquisition of 100% stake in a 270-mw coal based thermal power project in Maharashtra, extendable to 540 MW. An agreement was reached earlier between Tata Power and IEPL for sale of 100% stake in IEPL in December 2014. As per the terms of share purchase agreement, the acquisition was subject to fulfillment of certain conditions precedent. The company made all efforts to arrive at a workable solution to salvage a stressed asset along with key stakeholders. However, the stakeholders could not conclude, leading to non-fulfillment of the aforesaid conditions precedent. In view of the above, the company has decided not to pursue this opportunity any further and confirm the termination of the SPA.