Tata Power buys Tata Petrodyne

By Our Special Correspondent

MUMBAI, DEC. 20. Tata Power Company today announced the acquisition of Tata Petrodyne Limited, a private sector oil and gas exploration company, for Rs. 145 crores. This is in line with Tata Power's corporate strategy to establish a national presence in three core sectors of the economy - power, energy and communication infrastructure.

Tata Petrodyne is in consortium with global majors Cairn Energy, Enron, Hardy Oil & Gas and leading Indian oil and gas companies ONGC and Hindustan Oil Exploration Company (HOEC) for its gas and oil exploration and development projects in three offshore blocks.

The consideration of Rs. 145 crores for the acquisition was based on a financial valuation by S. B. Billimoria and Co. and a technical evaluation by a leading international petroleum consultant. The transaction will be financed from the company's internal resources.

Tata Power plans to augment the existing structure of the acquired company (management and employees) and is gearing up to identify and effectively leverage synergies to ensure an optimal strategic alignment of the power and energy businesses. With this acquisition Tata Power will have direct access to gas and oil resources that can be used to meet the rapidly growing demands of its power projects. This would enable the company to generate increasingly cost-effective power on a national level in future.

Send this article to Friends by E-Mail

Section  : Business
Previous : Rising debt burden of States
Next     : New norms to set up private banks shortly