Adani Transmission zooms 10% on exclusivity talks with Rel Infra for Mumbai power biz

Moneycontrol News

Adani Transmission share price was locked at 10 percent upper circuit at Rs 193.25 on Tuesday, following exclusivity talks with Reliance Infrastructure for buying its Mumbai city power business.

There were pending buy orders of 42,545 shares, with no sellers available, at 10:54 hours IST while Reliance Infrastructure share price was quoting at Rs 483.20, up Rs 6.10, or 1.28 percent on the BSE.

"....has entered into a period of exclusivity until January 15, 2018 in relation to discussions for the proposed sale of its integrated business of generation, transmission and distribution of power for Mumbai City to Adani Transmission (ATL)," Reliance Infrastructure said in its filing.

The proposed transaction is subject to confirmatory diligence, definitive documentation, and customary approvals. Accordingly, there can be no certainty that a transaction will result, it added.

Reliance Infrastructure intends to utilise proceeds of the proposed transaction entirely to reduce its debt, and further strengthen its financial position to tap mega growth opportunities in defence and EPC for the infrastructure sector.

Meanwhile, Reliance Infrastructure on Monday signed the business transfer agreement for transfer of its Western Region System Strengthening Scheme (WRSSS) Transmission Undertakings, to its two subsidiaries.

The transfer of WRSSS B & C Undertakings is part of process of sale of the businesses to Adani Transmission.

Earlier in December 2016, Reliance Infra had entered into share purchase agreement with Adani Transmission for sale of WRSSS valuing the businesses at Rs 1,000 crore.

The transaction is expected to be closed shortly as all key approvals (CCI, CERC and lenders) have been obtained.