Anil Ambani-led Reliance Infrastructure Ltd (RInfra) said on Wednesday that it has signed a binding term sheet agreement to sell its power transmission assets to the Adani Group firm ATL for over Rs 2
Anil Ambani-led Reliance Infrastructure Ltd (RInfra) said on Wednesday that it has signed a binding term sheet agreement to sell its power transmission assets to the Adani Group firm ATL for over Rs 2,000 crore.
RInfra owns two electricity transmission lines spanning Mahar-ashtra, Gujarat, Madhya Pradesh and Karnataka and has a 74 per cent stake in another project covering Himachal Pradesh and Punjab.
The entire sale proceeds will be utilised for reducing the company’s debt. “The transaction is in line with the strategic plan of monetising non-core business and focus-sing on major growth areas like Defence and the EPC business. Mone-tisation of the cement business has been completed and monetisation of roads and the Mum-bai power businesses are in advanced stage,” said Reliance Infra.
The proposed transaction is subject to due diligence, definitive documentation, and regulatory approvals.
SBI Capital Markets is acting as the financial advisors to RInfra for this transaction.
The acquisition will add around 3,521 circuit kilometres of transmission lines to Adani’s assets. RInfra had a consolidated debt of Rs 25,100 crore as on March 31.
As part of the agreement, RInfra will sell its entire holding in three operational transmission assets — Western Region System Strengt-hening Scheme (WRSSS) B and WRSSS C projects located in Maharashtra, Gujarat, Madhya Prad-esh and Karnataka, and Parbati Koldam Transm-ission Co Ltd (PKTCL) located in Himachal Pra-desh and Punjab. RInfra owns 74 per cent in PKTCL in JV with PowerGrid Corp.
