Kalpataru Power Transmission Ltd has scrapped the sale of one of its transmission assets to CLP India Pvt. Ltd, the Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ)-backed power generation company.
Kalpataru said in a statement it has scrapped the sale of the unit Alipurdar Transmission Ltd to CLP India because of the non-fulfillment of certain conditions as set out in the original sale agreement.
“The company is now actively pursuing and evaluating opportunities to sell its stake in Alipurdar Transmission to suitable investor(s),” it said.
This development comes ten months after Kalpataru agreed to sell three assets for a total enterprise value of Rs 3,275 crore (around $476 million). The deal marked the entry of CLP India in the transmission segment.
Of the remaining two units that were part of the original deal – Kalpataru Satpura Transco Pvt. Ltd and Kohima Mariani Transmission Ltd – the power firm has completed the sale of its entire stake in Kalpataru Satpura, it said.
Kalpataru added that it is also on track to complete work on and fulfill the requisite conditions for completing the sale of Kohima Mariani to CLP India. It is also looking to sell its 49.72% stake in Jhajjar KT Transco Pvt. Ltd.
Manish Mohnot, MD and CEO at Kalpataru, said the sale of assets will generate significant cash for the company and it will remain confident of achieving its goal to be a debt-free firm by end of March 2021.
Shares of Kalpataru Power were trading 0.53% up at Rs 220 apiece at the time of writing this report.
When the deal was announced in July last year, CLP India managing director Rajiv Mishra said the acquisition of the assets would allow the CDPQ-backed company to expand its geographical reach across India.
He added that the country also represented a primary growth market for CLP and CDPQ and that the two companies were aiming to invest only in a “low-carbon, clean energy portfolio”.
CDPQ had acquired a 40% stake in CLP India in September 2018 for Rs 2,640 crore. Hong Kong’s CLP Group retains a 60% stake in the Indian unit.