Thursday, January, 23, 2020 08:25:36

Adani Group’s Adani Transmission has reportedly inked a deal to purchase the entire stake in the Rajasthan-based power transmission company of KEC International, for around Rs 227 crore. Adani Transmission stated in a regulatory filing that a share purchase agreement with KEC International has been signed for buying the entire stake it holds in KEC Bikaner Sikar Transmission Pvt. Ltd.

The company informed that the agreement was inked on Nov 3, 2018. Citing sources with knowledge of the matter, the cost for purchasing KEC Bikaner Sikar Transmission shares as filed by Adani Transmission, is at an enterprise value of Rs 227.5 crore which will further be subjected to customary adjustments at closing.

Further from the reports, the agreement signed by the power firm would involve acquiring KEC’s entire equity shares take representing 99.99% of total issued, subscribed and paid up equity share capital. Also it acquires the preference shares constituting 100% of the total issued, subscribed and paid up equity share capital in KBSTPL.

As a result of this acquisition, the cumulative network of the power firm will purportedly be enhanced to about 12,923 circuit (ckt) kms. Approx. 10,357 ckt kms of this capacity are currently in operation and the rest 2,566 ckt kms are under different construction stages.

The sources further said that the KBSTPL project had been allocated to the company via competitive bidding prices. The project, which commissioned in December 2017, evidently consists the 344 ckt kms Bikaner-Sikar Line of 400 KV D/C .

According to a note from KEC International, this deal is anticipated to close by end of this year, and the sale is subject to approval from Rajasthan Rajya Vidyut Prasaran Nigam. Compared to its previous close, shares of Adani Transmission closed with a gain of 0.54%, at Rs 178.10 per unit on Friday.