Reliance Infrastructure (RInfra) has completed sale of 100% stake in Western Region System Strengthening Scheme (WRSSS) Transmission Undertakings to Adani Transmission for Rs 1,000 crore.
With the completion of this transaction, Adani Transmission now has over 11,000 circuit kilometre (ckt km) of network.
A circuit kilometre is one kilometre of electrical transmission or distribution circuitry including insulators, conductors and other structures required to complete any circuit.
Last month, both the companies had signed business transfer agreement for the deal and RInfra would use the proceeds from the sale of assets to reduction its debt.
“Further to its announcements on 5th October, 2016 and 7th December, 2016, Adani Transmission has completed acquisition of 100% stake of Western Region Transmission Gujarat (WRTG) and Western Region Transmission Maharashtra (WRTM), having operational transmission lines aggregating 3,063 ckt km with deal valued at Rs 1,000 crore. This acquisition is in sync with Adani Transmission’s strategy to enhance the value for its stakeholders, through organic as well as inorganic growth,” read a media statement by Adani Transmission.
With this acquisition now complete, the cumulative network of Adani Transmission will reach around 11,350 ckt km, of which approximately 9,000 ckt km is under operation; among assets being acquired by Adani Transmission, around 458 ckt km is operational and 2,350 ckt km is under various stages of construction.
Earlier in October 2016, RInfra had signed a binding term sheet, while in December 2016, it had signed share purchase agreement with Adani Transmission for 100% sale of its WRSSS transmission assets.
“The deal has now been completed with the transfer of shares and receipt of sale consideration. SBI Capital Markets Ltd is acting as the financial advisor to RInfra for this transaction,” announced RInfra on Wednesday.
Last month, both the companies also entered into a ‘period of exclusivity’ agreement for sale of RInfra’s Mumbai power business. The agreement is valid till January 15 next year to discuss proposed acquisition of the integrated business of generation, transmission, distribution and retail power.
If talks between both the companies fructify, it would mark Adani Transmission’s entry into power distribution business. This isn’t the first attempt by RInfra to sell stake in its Mumbai power business.
QUICK FLOW
- Earlier in October 2016, Reliance Infra had signed a binding term sheet
- Adani Transmission now has over 11,000 circuit kilometre of network
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