NEW DELHI: Adani Transmission Ltd (ATL) will acquire Reliance Infrastructure Limited (RInfra) for an estimated Rs 2,000 crore, the proceeds of which will be used by the Anil Ambani led firm to reduce its debt burden. Reliance Infrastructure had a consolidated debt of Rs 25,100.81 crore, as on March 31, 2016.
The companies on Wednesday jointly announced the signing of a binding Term Sheet with Adani Transmission Limited (ATL) for 100% stake sale of its Transmission Assets. In a separate statement Adani Transmission said that the sale is expected to be completed in the current financial year. SBI Capital Markets Limited is acting as the financial advisor to RInfra for the transaction.
As per the data available on Reliance Infrastructure, the firm values its transmission business at Rs 7,000 crore. RInfra owns the country’s first 100% private sector transmission project — Western Region System Strengthening Scheme (WRSSS) and the B & C projects located in the state of Maharashtra, Gujarat, Madhya Pradesh and Karnataka. RInfra owns also 74% in Parbati Koldam Transmission Company Limited (PKTCL) located in the states of Himachal Pradesh and Punjab in a joint venture with Power Grid Corporation of India Limited (PGCIL). All three transmission projects are completed and revenue generating, it said, adding that the most recent transaction was in line with its strategic plan of monetising non-core businesses. In August this year Reliance Infrastructure completed the sale of its cement assets to Birla Corp. for Rs 4,800 crore. Monetisation of Cement business has been completed and monetisation of Roads & Mumbai Power businesses are in advanced stage. The company is scouting for partners to sell its 11 toll road assets to an overseas buyer for more than $1.5 billion.