Adani Power extends timeline to Dec 31 for complete acquisition of DB Power

Adani Power on Monday said that the timeline for the completion of the Rs 7,017-crore deal to acquire thermal power assets of DB Power Ltd has been extended by one month till December 31, 2022.

Earlier, the company had extended the timeline for completion by a month till November 30, 2022.

"Parties to the proposed transaction have mutually agreed to further extend the long stop date as December 31, 2022, for achieving the closing/completion," a BSE filing said.

Earlier in August this year, Adani Power had informed the bourses that it has agreed to acquire DB Power Ltd (DB Power), which owns and operates a running 2x600 MW thermal power plant at district Janjgir Champa in Chhattisgarh.

DB Power has long and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Ltd, and has been operating its facilities profitably.

The initial term of the MOU (memorandum of understanding) shall be till October 31, 2022, which may be extended by mutual agreement, it had stated.

The enterprise value of DB Power was estimated at Rs 7,017 crore, subject to adjustments on the closing date, it had said.

DB Power is engaged in the business of establishing, operating and maintaining a thermal power generating station in Chhattisgarh. It was incorporated on October 12, 2006 under the Registrar of Companies, Gwalior.

The turnover of DB Power during last three financial years has been recorded at Rs 3,488 crore (for FY 2021-22); Rs 2,930 crore (for FY 2020-21) and Rs 3,126 crore (for FY 2019-20), respectively.

The DPPL (Diliigent Power Pvt Ltd) is the holding company of DB Power.