Reliance Infrastructure said it has entered exclusive negotiations with Adani Transmission Limited for the sale of its power distribution business in Mumbai.
The deal involves its integrated business of generation, transmission and distribution of power for Mumbai City, the Anil Ambani company said.
Just yesterday, it said its deal to sell its transmission assets under Western Region System Strengthening Scheme to the same company was on track and would be closed soon.
The discussions for the Mumbai transaction will be exclusive until 15th January, 2018, it said.
Exclusive discussion means that it cannot pursue negotiations or higher prices from any other suitor.
“The proposed Transaction is subject to confirmatory diligence, definitive documentation, and customary approvals. Accordingly, there can be no certainty that a transaction will result,” it said.
Further announcements will be made at an appropriate stage, it added.
RInfra intends to utilize the proceeds of the proposed transaction entirely to reduce its debt, and further strengthen its financial position to tap mega growth opportunities in Defence and EPC for the infrastructure sector, it said.
Reliance Infrastructure Limited (RInfra) is one of the largest infrastructure companies in India, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as Power, Roads and Metro Rail in the Infrastructure space and the Defence sector.
RInfra is also a leading utility company having presence across the value chain of power businesses i.e. Generation, Transmission, Distribution and Power Trading.
The Company has entered into the defence sector. The Maharashtra Government has allotted land at Mihan near Nagpur for the development of India’s first smart city for the defence sector known as Dhirubhai Ambani Aerospace Park (DAAP). RInfra associate Reliance Naval & Engineering Ltd, houses India’s largest dry dock facility to build warships and other naval vessels.