QIA to buy 25% in Adani power distribution firm

Transaction size is ₹3,200 crore

Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar, has agreed to buy 25.1% stake in Adani Electricity Mumbai Limited (AEML) for ₹3,200 crore (about $450 million).

Adani Transmission Limited (ATL), along with AEML, has signed agreements for the sale of a 25.1% stake in AEML to a subsidiary of QIA and for a shareholder subordinated debt investment by QIA in the power firm.

AEML is the licencee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers across a licence area of approximately 400 sq. km in Mumbai. AEML’s market share in Mumbai is approximately 87% by licence area, 67% by consumers served and 55% by electricity supplied.

As part of the transaction, ATL and QIA have agreed on definitive plans to ensure that over 30% of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023. The transaction is expected to be completed in early 2020.

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Printable version | Feb 23, 2020 9:38:08 PM |

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