Adani Transmission has entered into a contract to acquire Reliance Infrastructure’s power transmission assets of 3,100 circuit km for Rs 1,000 crore, reported PTI. The company announced the acquisition of Western Region System Strengthening Scheme transmission assets on October 5.
A statement issues by the company said the enterprise value of the asset is Rs 1,000 crore. The Adani Group company will go ahead with the acquisition after the share purchase agreement gets requisite approvals from various government bodies, including Competition Commission of India and Power Grid Corporation of India, among others.
After the acquisition is complete, Adani Transmission will have 10,350 circuit km of network. It currently has 5,450 circuit km of network. “Adani Transmission has grown its wings in transmission sector with a commitment to maintaining its important position in the country’s sector,” the company said.
Reliance Infrastructure confirmed the contract, and said Adani group will own its 74% stake in Parbati Koldam Transmission Company after the contract is executed following approvals from relevant authorities. “The deal excludes the expected upside from regulatory proceeds of various appeals of the assets,” Reliance said. The company said it would use the sale proceeds for debt reduction.
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