Power firm Adani Transmission has signed an agreement to buy entire stake in KEC InternationalNSE -2.94 %’s Rajasthan-based power transmission arm at an enterprise value of Rs 227.5 crore.
“We would like to inform that the company has signed share purchase agreement with KEC International on November 3, 2018 for acquisition of its entire stake in KEC Bikaner Sikar Transmission Private Ltd,” Adani Transmission said in a regulatory filing.
KEC Bikaner Sikar Transmission Private Limited (KBSTPL) project comprises 400 KV D/C Bikaner-Sikar Line of 344 circuit kilometer. The project was awarded to the company through competitive bidding prices and commissioned in December 2017.
Adani Transmission said the cost of acquisition of KBSTPL shares is at an enterprise value of Rs 227.5 crore, subject to customary adjustments at closing.
The company has signed agreement to acquire KEC International’s “entire stake of equity shares representing 99.99% of the total issued, paid up and subscribed equity share capital and preference shares representing 100% of the total issued, paid up and subscribed preference share capital in KBSTPL”.
The acquisition will enhance cumulative network of the company to around 12,923 circuit (ckt) kms, out of which approximate 10,357 ckt kms are under operation and 2,566 ckt kms under various stages of construction.
The sale is subject to approval of Rajasthan Rajya Vidyut Prasaran Nigam and according to note of KEC International is expected to close by end of this year. Shares of Adani Transmission on Friday closed at Rs 178.1 a unit, up by 0.54%, compared to their previous close.
Source: Economic Times