Tata Power indicated that the deal was terminated due inability of the private equity firm to fulfill certain pre-conditions in the investment agreement.
In June 2010, Tata Power signed a deal to raise $300m by selling a 14% to 15% stake in the SPVs — Bhira Investments and Bhivpuri Investments — to Olympus.
Under the deal, Tata Power agreed to sell so-called differential shares that were not supposed to carry voting rights.
At the end of five years, Olympus had the option to convert them into ordinary shares, giving the fund a 14-15 % stake each in Bhivpuri and Bhira.
