Competition Commission okays sale of Reliance Infrastructure’s power business to Adani Transmission
The Anil Ambani-led group said it will sell 100% stake of its debt-ridden power business, and the transaction is expected to be completed by March 2018.
Reliance Infrastructure on Monday announced that fair trade regulator Competition Commission of India has approved the sale of its Mumbai power business to Adani Transmission in a deal valued at Rs 13,251 crore. The Anil Ambani-led group said it will sell 100% stake of its debt-ridden power business, and the transaction is expected to be completed by March 2018.
Reliance Infrastructure and Adani Transmission had signed a definitive binding agreement in December 2017. “RInfra will utilise the proceeds of this transformative transaction entirely to reduce its debt,” the company said in a statement. “This is the largest-ever debt reducing exercise by any corporate.” Reliance Infrastructure will now focus on upcoming opportunities in asset light EPC (engineering, procurement and construction) and defence businesses, the statement added.
Reliance Infrastructure said the business has been valued at Rs 12,101 crore and regulatory assets at Rs 1,150 crore. The company will also fetch regulatory assets approved by the Maharashtra Electricity Regulatory Commission worth Rs 5,000 crore and another Rs 550 crore from net working capital. The total consideration of the deal will be Rs 18,800 crore.
The share purchase agreement will allow Adani Group to take over the generation, transmission and distribution of power of more than 1,800MW catering to nearly three million residential, industrial and commercial consumers in Mumbai and its suburbs.
“The acquisition marks our foray in the distribution sector in India,” Gautam Adani had said in December. “With this acquisition, Adani Transmission will enjoy benefit of scale and of being an integrated distribution and transmission business in India.”
Source: scroll.in
