Tata Power, India's largest integrated power company has entered into a Share Purchase Agreement (SPA) with Tata Africa Holdings (SA) for formalizing the acquisition of their 50% shareholding in Itezhi Tezhi Power Corporation (ITPC).

ITPC, a 50-50 joint venture with the Zambian parastatal utility ZESCO (ZESCO), is a special purpose vehicle which has been setup to build and operate a 120 MW hydro power plant in Itezhi Tezhi district in Zambia. ITPC has a 25 year Power Purchase Agreement with ZESCO and is expected to commission the power plant by Q4 2015.

The closing will be subject various approvals and consents as required under applicable law.

Anil Sardana, CEO & managing director, Tata Power stated, ''We are happy to announce our formally acquiring this project in Zambia from Tata Africa, which holds the shares as of now. We hope to leverage each of the African venture and our association to become a relevant local player in African Power system. Through this project, we hope to create value for the people of Zambia whilst maximizing shareholder value in line with our vision. We also hope that with this association we can look forward to forging further relationships in Zambia too.''

Shares of the company gained Rs 0.85, or 1.1%, to trade at Rs 78.05. The total volume of shares traded was 83,696 at the BSE (9.37 a.m., Thursday).