Tata Power to buy 11% stake in Australian firm...
Tata Power, India's biggest electricity generator outside state control, agreed to buy a A$44.1 million ($37 million) stake in Australia's Geodynamics, expanding its business to include geothermal energy. Tata Power agreed to buy 29.4 million Geodynamics shares at A$1.50 apiece plus 14.7 million options, Brisbane-based Geodynamics said in a statement on Thursday.
The stake represents 11.4% of Geodynamics' current outstanding shares, or 10% after the issue of new stock, said chief financial officer Paul Frederiks. Geodynamics is among companies in Australia seeking to tap super-hot granites lying as deep as 5 kilometres (3.1 miles) underground to produce low-emissions power. Australia has a target to increase the use of renewable energy to 20% of total electricity supplies by 2020 and last month announced a A$50 million programme to help fund deep geothermal drilling. The investment ‘‘not only strengthens our renewable portfolio but also creates opportunities to get a foothold in the growing renewable energy market in Australia,'' Prasad Menon, Tata managing director, said in a separate e-mailed statement.
Geodynamics gained 4 cents, or 3%, to A$1.40 in Sydney trading. The investment will make Tata Power Geodynamics' biggest shareholder, Frederiks said.
Two funds Sentient Executive and Sunsuper Pty will jointly hold about 10%, while Origin Energy, Australia's second-biggest electricity and gas retailer, owns about 7%.
The funds from Tata Power will strengthen Geodynamics' financial position as it prepares to make an investment decision with joint venture partner Origin Energy on the construction of a 50-megawatt power station in 2009, Geodynamics managing director Gerry Grove-White said in the statement. That project may cost about A$300 million, Frederiks said. Geodynamics and Tata Power also agreed to examine potential geothermal energy prospects outside Australia.
Source: The Times of India
The stake represents 11.4% of Geodynamics' current outstanding shares, or 10% after the issue of new stock, said chief financial officer Paul Frederiks. Geodynamics is among companies in Australia seeking to tap super-hot granites lying as deep as 5 kilometres (3.1 miles) underground to produce low-emissions power. Australia has a target to increase the use of renewable energy to 20% of total electricity supplies by 2020 and last month announced a A$50 million programme to help fund deep geothermal drilling. The investment ‘‘not only strengthens our renewable portfolio but also creates opportunities to get a foothold in the growing renewable energy market in Australia,'' Prasad Menon, Tata managing director, said in a separate e-mailed statement.
Geodynamics gained 4 cents, or 3%, to A$1.40 in Sydney trading. The investment will make Tata Power Geodynamics' biggest shareholder, Frederiks said.
Two funds Sentient Executive and Sunsuper Pty will jointly hold about 10%, while Origin Energy, Australia's second-biggest electricity and gas retailer, owns about 7%.
The funds from Tata Power will strengthen Geodynamics' financial position as it prepares to make an investment decision with joint venture partner Origin Energy on the construction of a 50-megawatt power station in 2009, Geodynamics managing director Gerry Grove-White said in the statement. That project may cost about A$300 million, Frederiks said. Geodynamics and Tata Power also agreed to examine potential geothermal energy prospects outside Australia.
Source: The Times of India
Labels: Business
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