Adani Transmission executes SPA for acquiring 100% of Reliance-Infrastructure assets

Adani Transmission Limited (ATL) on Wednesday executed the share purchase agreement (SPA) with Reliance Infrastructure Limited (R-Infra) for 100% acquisition of the latter's Western Region System Strengthening Scheme's (WRSSS) transmission assets.

Execution of agreement for the acquisition was announced by ATL in a BSE filing on Wednesday.

The deal, which was initiated in October 2016, has seen the enterprise value of the assets of roughly 3,100 ckt kms at around Rs 1,000 crore, an official communique from the Adani Group company stated.

The 100% acquisition of 3,100 circuit kilometres of R-Infra's WRSSS Transmission Assets include 2,089 ckt kms of Western Region Transmission Maharashtra (WRTM) and 974 ckt kms of Western Region Transmission Gujarat (WRTG).

"This transaction is subject to various regulatory and applicable statutory approvals, including the approval of the Competition Commission of India. With this acquisition, ATL will enjoy substantial benefit of scale driving and is in sync with the deep-rooted strategy of ATL to enhance the value for the stakeholders through both organic as well as inorganic growth," said ATL in an official communique.

According to ATL, on completion of this acquisition, its transmission network is set to reach about 10,350 ckt kms.

For R-Infra, whose lead financial advisor for this transaction is SBI Capital Markets Limited, the proceeds from the sale will go for deleveraging.

Meanwhile, ATL's shares fell by 3.29% to stand at Rs 58.75 per share on BSE on Wednesday, while R-Infra's shares closed 0.94% down at Rs 472.55 apiece.