September 9, 2008
Tata Power to Acquire 10% Stake in Geodynamics
The Tata Power Company, an integrated power company, has decided to acquire 29.4 million ordinary shares of Geodynamics, representing 11.4% of the current issued share capital, equivalent to 10% of the increased share capital after allotment by Geodynamics.
The shares will be acquired by Tata Power at an issued price of A$1.50 per share, entailing a total investment of A$44.1 million in absolute terms.
As part of the investment, Tata Power will also get a directorship on the board of Geodynamics. In addition to the cornerstone investment above, the companies have agreed to review the potential of geothermal prospects outside Australia by leveraging the companies' respective strengths.
Prasad Menon, managing director of Tata Power, said: "We are happy to have decided to purchase a stake in Geodynamics. This strategic partnership not only strengthens our renewable portfolio but also creates opportunities to get a foothold in the growing renewable energy market in Australia."