Reliance Infrastructure Limited today said it agreed to sell all itstransmission assets to Adani Transmission Limited, the largest private power transmission company operating in India.
This acquisition is expected to be completed in current financial year.
The entire sale proceeds shall be utilized for debt reduction, said the company.
The transaction is in line with the strategic plan of monetizing non-core business and focus on major growth areas like Defence and EPC business, the company added.
The deal will see the 100% acquisition of Western Region Strengthening System Scheme B (WRSSS B) around 2089 ckt kms and Western Region Strengthening System Scheme C (WRSSS C) around 974 ckt kms by Adani.
The deal will also see Adani acquiring 74% in Parbati Koldam Transmission Company Limited located in the state of Himachal Pradesh and Punjab in joint venture with Power Grid.
All three transmission projects are completed and revenue generating, said Reliance Infra..
Monetisation of Cement business has been completed and monetisation of Roads & Mumbai Power businesses are in advanced stage
The proposed Transaction is subject to due diligence, definitive documentation, applicable regulatory approvals and certain other conditions.
Further announcements will be made at an appropriate stage, the company further added.
Mr. Gautam Adani, Chairman of Adani Group, said “ Adani Transmission Ltd. has grown its wings in transmission sector with acommitment to maintain its leadership position in the transmission sector ofthe country. With this acquisition, ATL will enjoy substantial benefit of scaledriving and is in sync with the deep-rooted strategy of ATL to enhance thevalue for the stakeholders through both organic as well as inorganic growth.”