CCI approves sale of Mumbai Power Business of Rinfra to Adani Transmission
Competition Commission of India (CCI) has given its approval for the proposed 100% sale of Reliance Infrastructure Limited (RInfra) integrated Mumbai Power Business to Adani Transmission Ltd. (ATL). RInfra and ATL had signed definitive binding agreement for 100% stake sale of the integrated business of generation, transmission and distribution of power for Mumbai in December 2017. Total consideration value is estimated at Rs. 18,800 crore. Transaction is expected to be completed by March 2018.
RInfra will utilize the proceeds of this transformative transaction entirely to reduce its debt. This is the largest ever debt reducing exercise by any Corporate. This monetization is a major step in RInfra’s deleveraging strategy for future growth.
Reliance Infrastructure’s Mumbai Power business (known as Reliance Energy) is India’s largest private sector integrated power utility distributing power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq km. It caters to a peak demand of over 1,800 MW, with annual revenues of Rs. 7,500 crore with stable cash flows. RInfra will focus on upcoming opportunities in asset light EPC and Defence businesses.
@EPC World Media