Tata Power Cancels Agreement to Raise $300M

Tata Power Co. has canceled a plan to raise $300 million by issuing shares for two of its special purpose vehicles to private-equity firm Olympus Capital Holdings Asia, Reuters reported. The Indian utility company said that certain conditions stated in the investment agreement were not fulfilled, Reuters said.

(Reuters) – Indian utility Tata Power Co said on Monday it had terminated an agreement to raise $300 million by issuing shares with differential rights in two of its special purpose vehicles to private-equity firm Olympus Capital Holdings Asia.

Tata Power said in a statement to the stock exchange that certain conditions stated in the investment agreement were not fulfilled, without elaborating.

The company had said in June last year it was raising the money to fund acquisitions and cut debt.

(Reporting by Devidutta Tripathy)