Kalpataru completes sale of 100% stake in Kalpataru Satpura Transco to CLP India

Kalpataru Power Transmission Limited (KPTL) on Tuesday said it has successfully completed sale of its entire stake in Kalpataru Satpura Transco Private Limited (KSTPL) to CLP India Private Limited.

CLP India is owned by CLP Group, one of the largest investor-owned power businesses in Asia, and Caisse de dpt et placement du Qubec (CDPQ), one of Canada’s leading institutional fund managers.

The company, however, did not disclose the financial details of the transaction.

In a filing to the BSE on Tuesday, the company said “the company has successfully completed sale of its entire 100 per cent stake in KSTPL to CLP. Consequently, KSTPL ceased to be a subsidiary of the company with effect from November 20, 2019.

The filing further added that KPTL has “received full consideration towards sale of its stake in KSTPL to CLP in November 2019.”

In July 2019, KPTL had said that it has entered into binding agreements with Canada’s institutional fund manager CDPQ’s arm CLP India to sell its stake in three power transmission assets — KSTPL, Alipurduar Transmission Ltd (ATL) and Kohima Mariani Transmission Ltd (KMTL) referred jointly as SPVs — for an estimated enterprise value of Rs 3,275 crore.

Meanwhile, as terms of the agreement dated July 3, 2019, between the KPTL, ATL and CLP, the company was to transfer its entire 100 per cent stake in ATL to CLP, upon achieving commercial operations of both the elements of the transmission line, which was achieved in January 2020.

The agreement however was recently terminated on account of non-fulfilment of certain conditions precedent as per the agreed terms.

“The company is now actively pursuing and evaluating opportunities to sell its stake in ATL to suitable investor(s),” it said.

The company also entered into another agreement dated July 3, 2019, to transfer its entire 74 per cent stake in KMTL to CLP upon achieving commercial operations of the transmission line.

KPTL said the construction work relating to the KMTL project is “progressing well” and commercial operations are likely to be achieved by July-August 2020.

Post commercial operations of the KMTL project and satisfaction of conditions precedent including obtaining the requisite regulatory and other approvals, as stipulated under the agreement, the company will transfer its stake in KMTL to CLP, it noted.

The company further said it is also actively pursuing and evaluating opportunities to sell its stake to suitable investor(s) in Jhajjar KT Transco Pvt Ltd (JKTPL), which has been operating since March, 2012 and wherein it holds 49.72 per cent.

“We have successfully transferred the Satpura transmission asset in FY19-20. We are actively pursuing and evaluating the opportunities to sell Jhajjar asset, while evaluation of new buyers for Alipurduar asset has already started.

“We remain confident to complete the Kohima asset as per the given timelines. The sale of assets will generate significant cash for KPTL and we remain confident of achieving our goal to be a debt free company by end of March 2021,” said Manish Mohnot, Managing Director and CEO, KPTL.

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