Anil Ambani's R-Infra sells power transmission assets to Adani for over Rs 2,000 cr

Anil Ambani-led Reliance Infrastructure Ltd 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 per cent stake in another in Himachal Pradesh and Punjab.

Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group. Reuters

Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group. Reuters

"Reliance Infrastructure Ltd (RInfra) today announced the signing of a binding term sheet with Adani Transmission Ltd (ATL) for 100 per cent stake sale of its transmission assets," the company said in a statement on Wednesday.

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 percent 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 percent 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.

Updated Date: Oct 06, 2016 08:32 AM

Also Watch

Watch: The true stories from Dharavi that inspired Rajinikanth's Kaala
  • Thursday, March 8, 2018 Watch: Cyrus Khan talks about Parkour, jumping across walls and why he hates sitting
  • Thursday, May 31, 2018 Unwind: India's basketball sensation Amjyot Singh has his eyes set on becoming an NBA regular
  • Monday, May 28, 2018 First Day First Showsha — Review of Solo: A Star Wars Story in 10 questions
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls