Adani Group has agreed to buy Anil Ambani-led Reliance Infrastructure’s Mumbai integrated power generation, transmission and distribution (GTD) business for ₹13,251 crore.
Adani Transmission has signed a binding share purchase agreement (SPA) with Reliance Infra to buy the GTD business, which caters to about 3 million customers.
Commenting on the deal, Gautam Adani, chairman of the Adani Group, said, “The acquisition marks our foray in the distribution sector in India. We see the distribution sector as the next sunrise sector as India embarks on its mission to achieve 24x7 power for all.”
‘Growth opportunity’
“We see a massive growth opportunity and will look at both organic and inorganic opportunities to build a market leading distribution company. With this acquisition, Adani Transmission will enjoy benefit of scale and of being an integrated distribution and transmission business in India.”
In addition, regulatory assets under approval estimated at ₹5,000 crore and net working capital on closing estimated at ₹550 crore will flow directly to Reliance Infra. Total consideration value is estimated at ₹18,800 crore, Reliance Infra said in a statement, adding it would utilise the proceeds entirely to reduce its debt, become debt free and have a cash surplus of up to ₹3,000 crore.
Adani Transmission shares gained 10% to close at ₹225.25, while Reliance Infra shares rose 8% to ₹504 in a flat Mumbai market on Thursday.
