Adani Transmission and Reliance Infrastructure signed a binding share purchase agreement for RInfra’s integrated business of generation, transmission and distribution of power for Mumbai in December 2017.

May 10, 2018

Gautam Adani-controlled Adani Transmission Ltd is all set to close the Rs. 18,800-crore transaction with Reliance Infrastructure for Mumbai power generation and transmission business. The Maharashtra Electricity Regulatory Commission (MERC) has scheduled a public hearing on the matter for June 14, Adani Transmission said in a note to its financial statements for the quarter ended March 2018.

The MERC hearing is believed to be the last step in the line of regulatory approvals required for the deal to go through, revealed sources. The transaction was earlier approved by the Competition Commission of India (CCI). As per the company’s regulatory filing, Adani Transmission has advanced Rs. 2,602 crore to RInfra as part of the deal.

Adani Transmission and Reliance Infrastructure signed a binding share purchase agreement for RInfra’s integrated business of generation, transmission and distribution of power for Mumbai in December 2017. The total deal value was set at Rs. 13,251 crore, however, considering the regulatory assets under approval estimated at Rs. 5,000 crore and net working capital on closing estimated at Rs. 550 crore, the total consideration value has reached Rs. 18,800 crore, RInfra stated then.

According to industry sources, the funding for the deal may come from a consortium of public and private banks led by State Bank of India (SBI).