CLP cuts stake in Indian venture

CLP (0002) said it plans to sell a 10 percent stake in its India subsidiary Apraava Energy to CDPQ Infrastructures Asia II for 6.6 billion Indian rupees (HK$653 million).

The two parties currently own a 60 percent and 40 percent interest in the Indian unit and will each hold half upon completion, the electricity provider said in a filing yesterday.

The unit will cease to be its subsidiary and the financial results will no longer be consolidated into the CLP's financial statements, CLP said.

A one-off loss of approximately HK$980 million from the deal is expected to be recorded in CLP's interim results, and a further loss is also anticipated at the completion of the deal in full to realize the exchange and hedging reserves associated with its investment in Apraava Energy, the filing showed.

CLP said through this alignment, Apraava Energy's strategy will have a sharper and dedicated focus on investing in decarbonization and energy transition for the business.