PTC India Inviting Bids for Sale of PTC Energy
PTC India, a provider of power trading solutions, has announced its decision to divest its entire 100% equity stake in its subsidiary, PTC Energy, to ONGC, a state-owned upstream firm. This transaction is valued at an enterprise value of Rs 2,021 crore, with ONGC offering an all-cash bid of Rs 925 crore to acquire the full 100% equity stake in PTC Energy Ltd. The enterprise value includes both outstanding debt and equity value and is subject to adjustments upon the completion of the transaction, as specified in the bid format. In light of this, PTC India has officially made this announcement to clarify and supplement its previous communication to stock exchanges, particularly in response to media reports regarding the sale of its stake in PTC Energy Ltd (PEL).
PTC India invited bids for the sale of its 100% equity stake in PTC Energy, and the successful bidder was identified as ONGC, offering a cash bid of Rs 925 crore. PTC Energy, established in August 2008 as a subsidiary of PTC India, has played a pivotal role in India's evolving energy sector through asset-based businesses. Notably, PEL has successfully commissioned seven wind projects with a total capacity of 288.8 MW in different regions, including Madhya Pradesh, Andhra Pradesh, and Karnataka.
It is important to note that the completion of this transaction is contingent upon the fulfillment of Conditions Precedent (CP), compliance with other terms and conditions as stipulated in the share purchase agreement to be executed between the involved parties, and obtaining any necessary approvals mandated by applicable laws. Furthermore, the acquisition is subject to the approval of PTC India Limited's shareholders, as required by relevant regulations. This marks a significant development in the energy sector, with ONGC's acquisition of PTC Energy bringing together two key players in the industry.