Adani Energy Solutions on Thursday said it has completed the acquisition of Essar’s Mahan-Sipat Transmission assets for an enterprise value of Rs 1,900 crore.
The share acquisition is pursuant to definitive agreements signed in June 2022, a company statement said.
According to the statement, Adani Energy Solutions Ltd (AESL), has acquired a 100 per cent stake in Essar Transco Limited after obtaining the requisite regulatory and other approvals for an enterprise value of Rs 1,900 crores. The acquisition covers a fully operational 400 kV, 673 ckt kms (circuit kilometre) inter-state transmission line linking Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh.
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The project operates under the Central Electricity Regulatory Commission (CERC) regulated return framework and was commissioned on September 22, 2018.
Adani Transmission Step Two Ltd, a wholly owned subsidiary of Adani Energy Solutions, has acquired a 100 per cent stake in Essar Transco Ltd for Rs 1,900 crore.
This establishes a new benchmark for AESL to raise capital and unlocks the lower-cost debt for its operational assets. MUFG Bank Ltd is the sole lender for the financing.
The acquisition of the Mahan-Sipat transmission network will consolidate AESL’s presence in central India with 4 operating assets having 3,373 ckt km in the region.
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