Adani Group’s transmission arm ATL - Adani Transmission Limited has informed about the execution of definitive agreement with Reliance Infrastructure Limited for 100 per cent acquisition of WRSSS - Western Region System Strengthening Scheme’s transmission assets and 74 per cent in PKTCL - Parbati Koldam Transmission Company Limited. The deal has put the enterprise value of WRSSS transmission assets of approximately 3,100 circuit km at about Rs 1,000 cr.
The announcement of the deal was made on 5th October, subsequently, the SPA - Share Purchase Agreement for WRSSS was executed between ATL and Reliance Infra. The acquisition process is likely to complete in 2017.
In a separate filing to the stock exchanges, Reliance Infra also mentioned that SPA for Parbati Koldam Transmission shall be executed upon receipt of approval from the Power Grid Corporation and other statutory approvals.
The recent SPA marks the 100 per cent acquisition of 3,100 circuit km of Reliance Infra's WRSSS Transmission Assets B & C and 74 per cent in PKTCL. The transactions are however subject to applicable regulatory approvals.
For Reliance Infra, the proceeds from the sale shall be utilized for debt reduction. SBI Capital Markets is acting as the financial advisors to Reliance Infra for this transaction.
In its filing, Adani Transmission stated that ATL had grown its wings in transmission sector with a commitment to maintain its significant position in the transmission sector of the nation. With this acquisition, ATL would enjoy substantial benefit of scale driving and was in sync with the deep-rooted strategy of ATL to improve the value for the stakeholders via both organic as well as inorganic growth, it added.
Meanwhile, Adani Transmission share price fell close to 5 per cent intraday on the National Stock Exchange (NSE). For more details please visit Adani transmission share price history.
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