The Competition Commission of India has given approval for the proposed 100% sale of Reliance Infrastructure’s integrated Mumbai power business to Adani Transmission, the Anil Ambani-led company said in a statement Monday.
In December, Gautam Adani-led Adani Transmission has signed a definitive agreement to acquire Anil Ambani-led Reliance Infrastructure’s power generation and distribution business in Mumbai in a deal valued at Rs 13,251 crore. While there will be an upfront payment of Rs 13,251 crore, Reliance Infrastructure will also get regulatory assets under approval estimated at Rs 5,000 crore and net working capital on closing estimated at Rs 550 crore, making the total consideration around Rs 18,800 crore.
Transaction is expected to be completed by March 2018.
“Reliance Infra will utilize the proceeds of this transformative transaction entirely to reduce its debt. This monetization is a major step in RInfra’s deleveraging strategy for future growth. RInfra will focus on upcoming opportunities in asset light EPC and Defence businesses,” Reliance Infra said.
The transactions entails transfer of a 500 mw power plant based in Dahanu in Mumbai, license for power distribution in the city and related infrastructure.
The Mumbai distribution circle of Reliance Infrastructure caters to around three million customers, with a total requirement of 1,892 mw of power, of which 500 mw is sourced from its own power plant.
