New Delhi: Anil Ambani-led Reliance Infrastructure Ltd on Wednesday signed an agreement to sell its power transmission assets to Adani Group for over Rs 2,000 crore.
RInfra owns two electricity transmission lines spanning Maharashtra, Gujarat, Madhya Pradesh and Karnataka and has a 74 percent stake in another in Himachal Pradesh and Punjab.
"Reliance Infrastructure Ltd (RInfra) today announced the signing of a binding term sheet with Adani Transmission Ltd (ATL) for 100 percent stake sale of its transmission assets," the company said in a statement here.
While the two companies did not give valuation of the deal, banking sources said the sale consideration was in excess of Rs 2,000 crore.
RInfra owns the country's first 100 per cent private sector transmission project Western Region System Strengthening Scheme (WRSSS) B & C projects located in the state of Maharashtra, Gujarat, Madhya Pradesh and Karnataka.
It also owns 74 per cent in Parbati Koldam Transmission Company Limited (PKTCL) located in Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India Ltd (PGCIL).
All three transmission projects are completed and revenue generating.
"The entire sale proceeds shall be utilized for debt reduction," the statement said.
"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."
RInfra has completed monetisation of cement business and is in advanced stage of doing the same for roads and Mumbai power businesses.
"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 statement added.
SBI Capital Markets Ltd acted as financial advisors to RInfra for this transaction.