MUMBAI: Anil Ambani led-Reliance Infrastructure is in a pact to sell its power transmission assets to billionaire Gautam Adani’s Adani Transmission, to raise funds to pare debt.
While the two companies did not disclose the deal size, Reliance Infrastructure’s website states that its portfolio of transmission projects has an asset base of Rs 7,000 crore.
“With this acquisition, ATL will enjoy the substantial benefit of scale driving and is in sync with the deep-rooted strategy of ATL to enhance the value for the stakeholders through both organic as well as inorganic growth,” Gautam Adani, chairman of Adani Group, said.
With the acquisition of Reliance Infrastructure’s assets, Adani Transmission will own and operate 10,000 circuit km of power transmission projects. Reliance Infrastructure currently has three operational projects, two projects under the Western Region System Strengthening Scheme and one joint venture project with Power Grid Corporation of India.
Reliance Infrastructure, which is divesting non-core assets to raise funds to pare debt, is also working on monetization of roads and Mumbai power business in progress. It recently completed the 100% sale of cement subsidiary to Birla Corp for Rs 4,800 crore.
The deal to sell the transmission assets is subject to due diligence, definitive documentation, applicable regulatory approvals and certain other conditions, the two companies said.
