New Delhi: Adani Transmission Limited (ATL) will buy Anil Ambani-led Reliance Infrastructure's (RInfra's) Mumbai power business – Reliance Energy for around Rs 13,000 crore, reports, DNA Money, quoting sources.


COMMERCIAL BREAK
SCROLL TO CONTINUE READING

As per DNA Money report, the deal valuation is less than what Greenko had offered a few months ago.


The Hyderabad-headquartered Greenko, backed by Singapore's GIC and Abu Dhabi Investment Authority, had sought to acquire Anil Ambani-led Reliance Infrastructure's flagship Mumbai electricity business for an enterprise value of Rs 13,000-14,000 crore, which lapsed in September.


Last month Reliance Infrastructure had entered into a period of exclusivity with Adani Transmission for proposed sale of its integrated business of generation, transmission and distribution of power for Mumbai.


In a regulatory filing dated Ocober 10, 2017, Reliance Infrastructure had said, "It has entered into a period of exclusivity until January 15, 2018, in relation to discussions for the proposed sale of its integrated business of generation, transmission and distribution of power for Mumbai city to Adani Transmission."


The Anil Ambani-led Reliance Infra intends to utilise the proceeds of the proposed transaction entirely to reduce its debt and further strengthen its financial position to tap mega growth opportunities in defence and EPC (engineering, procurement, construction) for the infrastructure sector.


RInfra had consolidated debt of Rs 25,100.81 crore as on March 31.


According to Adani Transmission, the proposed transaction will strengthen its footprint in the power transmission sector and also mark its foray into the distribution space.