Adani to acquire Essar’s Mahan-Sipat transmission for ₹1,913 crore
PremiumThe target asset is an operational 400 kV inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh
NEW DELHI : Adani Transmission Ltd (ATL) has signed definitive agreements with Essar Power Ltd for acquiring 673 ckt kms (circuit kilometre) operational inter-state transmission project owned and operated by Essar Power Transmission Ltd (EPTCL) for an enterprise value of ₹1,913 crore.
The target asset is an operational 400 kV inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh. The project operates under the Central Electricity Regulatory Commission (CERC) return framework and was commissioned on 22 September, 2018.
Anil Sardana, MD & CEO, Adani Transmission said: “The acquisition of Essar’s transmission asset will consolidate ATL’s presence in central India. With this acquisition, ATL is well on path to achieve its 20,000 ckt kms target before time. We continue to remain at the forefront of grid stability and provide sustainable, reliable, and affordable energy solutions while creating long term sustainable value for our stakeholders."
The proposed transaction will be executed through transaction steps which shall be subject to necessary regulatory approvals and other consents, said a statement from Adani Transmission.
The acquisition is in line with Adani Transmission’s value added growth strategy through organic as well as inorganic growth opportunities, it said. With this acquisition, the cumulative network of the company will reach 19,468 ckt kms, out of which 14,952 ckt kms is operational and 4,516 ckt kms is under various stages of execution.
Further, with this scale of operations, the company will derive synergies in terms of O&M (operations and maintenance) cost optimization and shared resources.
“It will also fortify its position of being the largest private sector transmission and distribution company in the country," said the statement.
The Adani Group company also operates a distribution business serving over 12 million residents of Mumbai.
The shares of the company on the BSE closed at ₹1,953 on Friday, lower by ₹73.80 or 3.64% from its previous close.