Kalpataru Power Transmission (KPTL) has announced that it has signed definitive agreements to sell Alipurduar Transmission (ATL) to Adani Transmission for a total Enterprise Value (EV) of about ₹ 1,286 crores, subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction. The transaction is also subject to requisite approvals and compliances.
ATL was set up as part of an inter-state transmission system for strengthening and transferring of power from new hydroelectric power projects in Bhutan to India. The project involved design, financing, construction, commissioning, operation and maintenance of 325 kms of 400 KV transmission line. ATL won this project on BOOM basis through a competitive bidding process from REC Transmission Projects Company (RECTPCL) for a period of 35 years. ATL is a wholly owned subsidiary of KPTL. Ernst & Young (EY) and Khaitan & Co are advisors to KPTL for this transaction.
Commenting on the asset sale, Manish Mohnot, Managing Director & CEO, KPTL said, “The sale of T&D assets is testament of our ability to build, operate and sell in a time bound manner. We now have agreements in place for all our T&D assets, ie, ATL, Kohima and Jhajjar transmission assets. In FY19-20, we have already completed sale and transfer of the Satpura transmission asset. We are now targeting to complete the sale and transfer of all balance T&D assets in FY20-21. The sale of T&D assets is a pivotal step in accelerating KPTL’s growth strategy in the global EPC market and a major step towards enhancing shareholder value.”