Reliance InfrastructureNSE -1.59 % is likely to close the deal to sell its Mumbai power business to Adani Transmission by July as the Maharashtra Electricity Regulatory Commission has given its approval for the deal, the Anil Ambani led company said in a statement on Thursday.
Reliance Infrastructure has already received the approval of Competition Commission of India and its shareholders for the deal.
In December, Reliance Infrastructure and Gautam Adani-led Adani Transmission signed a definitive agreement for the former’s power generation and distribution business in Mumbai in a deal valued at 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.
The deal, which marks Adani Transmission’s foray into power distributions business, will help Reliance Group to pare its debt.
“Reliance Infrastructure will utilize the proceeds of this transformative transaction entirely to reduce its debt, becoming debt free and up to Rs 3,000 crore cash surplus,” the company said in the statement.
Source: Economic Times