Adani Transmission Ltd (ATL) signs binding SPA with R-Infra to acquire Integrated Business of Generation, Transmission, Distribution and retail of power for Mumbai City
- The proposed transaction will mark Adani Transmission’s foray into distribution space
- The cumulative transmission network of ATL will reach around 12000 ckt kms with this acquisition
- The transformation capacity of ATL will also increase to 19,200 MVA from 36 substations
- Total consideration value is estimated at Rs.12,101 crore
- The generation, transmission and distribution network caters to around 3 million customers
Ahmedabad, December 21st, 2017: Adani Transmission Ltd has today signed a binding SPA to acquire the Mumbai Generation, Transmission and Distribution (GTD) business. Adani Transmission has valued the business at a total consideration of 12,101 crore. In addition the Regulatory Assets approved to the extent of INR 1,150 cr for the period April 1, 2018 to 31 Mar, 2019 will be to the account of the Seller.
The GTD business caters to ~3 million customers, making it the Country’s largest private sector integrated power utility, entailing ~1,892MW of power distribution along with generation facilities (500 MW thermal coal based) and over 540 ckt kms of transmission network.
Speaking on this landmark acquisition, Mr. Gautam Adani, Chairman of Adani Group, said “the acquisition marks our foray in the Distribution sector in India. We see the distribution sector as the next sun rise sector as India embarks on its mission to achieve 24x7 power for all. We see a massive growth opportunity and will look at both organic and inorganic opportunities to build a market leading Distribution Company. With this acquisition, Adani Transmission will enjoy benefit of scale and of being an integrated distribution and transmission business in India"
The transaction is subject to regulatory and other customary approvals.
SBI Capital Markets acted as financial advisor to ATL on this acquisition.
R-Infra holds license to distribute electricity to Consumers in Mumbai in an area of ~ 400 Sq Kms in and around the suburbs of Mumbai inclusive of area covered under Mira Bhayander Municipal Corporation. The distribution network caters to the needs of over 3 million customers in the licensed area with annual energy input requirement of about 10,800 MUs and maximum system demand of about 1,892 MW.
Power Distribution Division of the Company, has been in the field of electricity distribution for over 90 years and has achieved the distinction of consistently operating its distribution network at 99.99 per cent reliability.
Transmission Business has been operating eight nos 220 kV Extra High Voltage (EHV) substations having a total 3,000 MVA of transformation capacity with around ~540 ckt kms of overhead & underground lines including lines for evacuation of power from 500 MW Dahanu Thermal Power Station and connectivity between the EHV Sub-stations, either directly with each other or through LILO arrangements and associated infrastructure at Aarey, Goregaon, Gorai, Ghodbunder, Saki, Versova, Chembur and Borivali.
Dahanu Thermal Power Station (DTPS) has been operating 500 MW (2X250 MW) coal based power plant at Dahanu, Maharashtra. DTPS has a long term PPA with Mumbai Distribution for the entire capacity and DTPS has a long term Fuel Supply Agreement (FSA) with South Eastern Coalfields Limited (SECL).
The proposed transaction will mark ATL’s foray into distribution space and also strengthen Adani Transmission’s footprint in the power transmission sector.
With this acquisition, apart from largest distribution network, the cumulative transmission network of ATL will reach around 12000 ckt kms, out of which approximate 9540 ckt kms are under operation (including ~1000 ckt kms under process of acquisition) and approximate 2350 ckt kms under various stages of construction. The transformation capacity of ATL will also increase to 19,200 MVA from 36 substations (Including 8 EHV Substations under acquisition) spread across the Country.