Adani Power to acquire DB Power for ₹7,017 crore
PremiumAdani Power will acquire 100% of the total issued, subscribed and paid up equity share capital and preference share capital of DPPL
Adani Power will acquire DB Power for an enterprise value of ₹7,017 crore and expand its presence to Chhattisgarh.
DB Power owns and operates a 2x600 MW thermal power plant at the Janjgir Champa district in the state.
“Adani Power Limited has agreed to acquire DB Power Limited, which owns and operates a running 2x600 MW thermal power plant at District Janjgir Champa in Chhattisgarh," Adani Power said in a regulatory filing, adding that DB Power has long and medium-term power purchase agreements (PPA) for 923.5 MW of its capacity, backed by fuel supply agreements (PPA) with Coal India Ltd, and has been operating its facilities profitably.
The turnover of DB Power in FY22 was ₹3,488 crore. Its holding company is Diligent Power Pvt Ltd (DPPL).
Adani Power will acquire 100% of the total issued, subscribed and paid up equity share capital and preference share capital of DPPL.
The acquisition will help the the Adani Group company to expand its offerings and operations in the thermal power sector of Chhattisgarh.
On the timeline for completion of the transaction, the filing said: “the initial term of the MoU shall be till October 31, 2022, which may be extended by mutual agreement."
The proposed transaction is subject to receipt of approval from the Competition Commission of India and any other approvals as may be identified following the due diligence, it said.
Currently, Adani Power has a generation capacity of 12,450 MW. Its shares on the BSE closed at ₹412.20, higher by 3.20% from its previous close.
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