Reliance Infrastructure Ltd. (RInfra) has completed the sale of its 100% shareholding in integrated Mumbai power distribution business to Adani Transmission Limited (ATL) for a total transaction value of ₹18,800 crore.
The deal was announced in December 2017 with the signing of a definitive binding agreement between R-Infra and ATL, and has now been completed with transfer of shares and receipt of sale consideration, RInfra said in a statement, adding that the company had reduced debt liabilities by ₹13,800 crore from the deal proceeds.
The integrated Mumbai power business includes the power generation units based at Dahanu, power transmission network across Mumbai and Maharashtra, and the retail power distribution network in Mumbai suburbs.
Regulatory Assets under Approval of ₹5,000 crore will flow entirely to RInfra, making the company debt-free in 2019. “This is the largest ever debt reduction for any company in the power sector in India. With this deal, Reliance Infrastructure is set to achieve top-end ratings,” Reliance Group chairman Anil Ambani said.
The acquisition shall be housed in Adani Electricity Mumbai Ltd. (AEML), a newly formed entity and a subsidiary of ATL, Adani Group said in a statement. This marks the company’s foray into the large-scale electricity distribution sector.
Large scale foray
Gautam Adani, chairman, Adani Group, said, “I am delighted to announce our significant launch into largescale city electricity distribution business and are privileged to serve over 3 million consumers in the city of Mumbai. We aspire to enter into electricity distribution business in key cities and districts in India in pursuit of Government of India’s Vision to enable ‘Power for all by 2020’.”
