Tata Power to buy BP Alternative Energy Holdings' 51% stake in Tata BP Solar

Mumbai: Tata Power Company is in pact to buy BP Alternative Energy Holdings' 51% stake and preference shares in their joint venture Tata BP Solar India, the Tata group power utility informed bourses Tuesday.

Post acquisition, Tata Power would own 100% in the solar power company.

"Tata Power and BP have agreed that the company will continue to enjoy access to certain BP technology until 2013. The company and BP will enter into a technology agreement to give effect to this understanding," the company said in a statement to the bourses.

The stake sale is a part of BP's decision to exit solar business over the next few months because it has become unprofitable. Responding to media reports, Tata BP Solar's Chief Executive Officer K Subramanya had said earlier, "Tata BP Solar is not impacted by the decision of BP to gradually exit solar business and that it's business as usual."

An ET query to Tata Power on the deal size remained unanswered.

"To provide for a smooth transition in respect of branding and fulfillment of re-certification requirements for solar photovoltaic modules, Tata Power and BP have agreed or a transition period for product and non-product related re-branding and certification," the Tata Power statement said.