Reliance Infra in talks with Adani to sell Mumbai power business

Reliance Infra intends to utilise the proceeds to reduce its debt and strengthen its position to tap opportunities in defence and infra.

By: ENS Economic Bureau | Mumbai | Updated: October 11, 2017 1:46 am
anil ambani, reliance group, Reliance Infrastructure, reliance, adani, reliance adani transmission Reliance Power Grid Corporation, india news, business news, indian express Reliance Infrastructure’s debt stood at Rs 25,800 crore at the end of the financial year 2016-17. (Source: PTI)

Reliance Infrastructure, controlled by the Anil Ambani group, has 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.

The proposed transaction is subject to confirmatory diligence, definitive documentation and customary approvals. “Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage,” Reliance Infra said.

On Tuesday, the company 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.”

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. Adani Transmission said the proposed transaction will strengthen its footprint in the power transmission sector and mark its foray into distribution.

Reliance Infrastructure’s debt stood at Rs 25,800 crore at the end of the financial year 2016-17.

Shares of Adani Transmission jumped 10 per cent to Rs 193.25 per share, while shares of Reliance Infrastructure rose as much as 3.5 per cent to Rs 494.

Earlier, Greenko was in talks with RInfra to acquire its Mumbai electricity business. It had also been in talks with Canada’s Public Sector Pension Investment Board for the Mumbai power business, saying in November 2015 that it signed a non-binding term sheet to sell 49 per cent of the assets.

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