Adani Transmission Ltd has agreed to buy Reliance Infrastructure Ltd’s Western Region System Strengthening Scheme (WRSSS) power transmission assets of about 3,100 circuit km at an enterprise value of Rs1,000 crore.
Reliance Infra owns India’s first private sector transmission projects—WRSSS B and WRSSS C—located in Maharashtra, Gujarat, Madhya Pradesh and Karnataka.
In October, the two companies had signed a binding term sheet agreement for Reliance Infra’s three operational transmission projects —WRSSS B, WRSSS C and Parbati Koldam Transmission Co. Ltd.
Reliance Infrastructure owns 74% in Parbati Koldam located in Himachal Pradesh and Punjab in a joint venture with Power Grid Corp. of India Ltd.
“All three transmission projects are completed and revenue generating. The entire sale proceeds shall be utilized for debt reduction,” the company said.
The deal is subject to regulatory approvals, including from the Competition Commission of India.
Adani Transmission has six fully operational transmission systems and it is also constructing additional projects of around 1900 circuit km in Rajasthan, Chhattisgarh, Madhya Pradesh, Maharashtra, Jharkhand, and Bihar.
Once the acquisition of the WRSSS transmission assets is completed, the transmission network of Adani Transmission is set to reach 10,350 circuit km.
SBI Capital Markets Ltd is acting as the financial advisers to Reliance Infra for this transaction, the company had said in October.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
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Source: Mint
