New Delhi: Power firm Adani Transmission (India) Ltd has signed an agreement to buy entire stake in KEC International Ltd’s Rajasthan-based power transmission arm at an enterprise value of ₹227.5 crore. “We would like to inform that the company has signed share purchase agreement with KEC International Ltd on 3 November 2018 for acquisition of its entire stake in KEC Bikaner Sikar Transmission Pvt. Ltd,” Adani Transmission said in a regulatory filing.
KEC Bikaner Sikar Transmission Pvt. Ltd (KBSTPL) project comprises 400 KV D/C Bikaner-Sikar Line of 344 circuit kilometres. The project was awarded to the company through competitive bidding prices and commissioned in December 2017.
Adani Transmission said cost of acquisition of KBSTPL shares is at an enterprise value of ₹227.5 crore subject to customary adjustments at closing.
The company has signed agreement to acquire KEC International’s “entire stake of equity shares representing 99.99% of the total issued, paid up and subscribed equity share capital and preference shares representing 100% of the total issued, paid up and subscribed preference share capital in KBSTPL”.
The acquisition will enhance cumulative network of the company to around 12,923 circuit (ckt) km, out of which approximate 10,357 ckt km are under operation and 2,566 ckt km under various stages of construction.
The sale is subject to approval of Rajasthan Rajya Vidyut Prasaran Nigam Ltd and according to note of KEC International is expected to close by end of this year.
On Friday, Adani Transmission shares rose 0.54% to ₹178.10 apiece while KEC International’s stock gained 3.54% to ₹305.6 on the BSE. The benchmark Sensex gained 1.68% to end that day at 35,011.65 points.