Tata Power buys out BP's stake in Tata BP Solar
27 December 2011
Tata Power Company Ltd has signed a share purchase agreement with BP Alternative Energy Holdings Limited to purchase its 51-per cent stake, comprising equity and preference shares, in the joint venture Tata BP Solar India Limited.
On completion of the transaction, Tata Power will own 100 per cent of the company, Tata Power said in a filing with the Bombay Stock Exchange (BSE).
BP is reported to be exiting the solar power business, which was unprofitable for the company. The joint venture has been in operation for the past 40 years, Tata BP Solar said in an official statement released earlier.
However, the exit of BP will have no impact on the JV's business, the company said in its statement.
"Tata BP Solar is not impacted by the decision of BP to gradually exit solar business and that it's "business as usual'', K Subramanya, CEO of Tata BP solar, said.
The company is now looking to bolster its overall profitability through various strategies, including expansion of overseas market presence, according to Subramanya.