Reliance Infra to sell its transmission business to Adani
Gautam Adani, Chairman of Adani Group, said With this acquisition, ATL will enjoy substantial benefit of scale driving and is in sync with the deep-rooted strategy of ATL to enhance the value for the stakeholders through both organic as well as inorganic growth.
Anil Ambani-led Reliance Infrastructure (RInfra) will sell its transmission business to Adani, the company said on Wednesday.
The company did not disclose the deal size but said that the proceeds of the deal will be used to reduce its debt.
It said, "The transaction is in line with the strategic plan of monetising non-core business and focus on major growth areas like Defence and EPC business. Monetisation of Cement business has been completed and monetisation of Roads & Mumbai Power businesses are in advanced stage."
RInfra has a total debt of Rs 14,444.28 crore as on March 31, 2016 as per data compiled by Zeebiz.com.
RInfra owns the country’s first 100% private sector transmission project – Western Region System Strengthening Scheme (WRSSS) – B & C projects located in the state of Maharashtra, Gujarat, Madhya Pradesh and Karnataka.
RInfra owns 74% in Parbati Koldam Transmission Company Limited (PKTCL) located in the state of Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India Limited (PGCIL). All three transmission projects are completed and revenue generating.
Gautam Adani, Chairman of Adani Group, said “With this acquisition, ATL will enjoy substantial benefit of scale driving and is in sync with the deep-rooted strategy of ATL to enhance the value for the stakeholders through both organic as well as inorganic growth.”
With this deal, the transmission network of Adani Transmission is expected to surpass 10000 circuit kilometers on completion of acquisition of Reliance Infra's transmission asset, it stated in a release.
This acquisition is expected to be completed in current financial year and subject to due diligence, definitive documentation, applicable regulatory approvals and certain other conditions.
After the announcement, shares of RInfra on BSE rose by 1.68% to Rs 599.65 per share.
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