New Delhi: Adani Transmission Ltd (ATL) has signed a pact with Essel Infraprojects Limited (EIL) to acquire its transmission service provider — Warora-Kurnool Transmission Ltd — for Rs 3,370 crore. "We would like to inform that the Company (ATL) has signed definitive agreements with Essel Infraprojects Limited (EIL) on 26th March, 2021 for acquisition of Warora-Kurnool Transmission Ltd. ("WKTL")," Adani Transmission said in a regulatory filing to the stock exchanges on Saturday. ATL's acquisition values the Enterprise Valuation of the target at Rs 3,370 crore, the company added.
Adani Transmission said that the acquisition of Warora-Kurnool Transmission Ltd is expected to be completed in one month subject to all necessary regulatory approvals and other consents. The regulatory approval for the substitution of the original awardee in the contract by ATL has already been received from Central Electricity Regulatory Commission (CERC). The lenders' consent and other necessary regulatory approvals shall be obtained before closure of the transaction, said Adani Transmission.
"The acquisition of WKTL will bolster ATL's pan-India presence, consolidating further its position as the largest private sector transmission company in India. This strategic West to South 765 KV interconnector with Substation in Southern India, completes ATL presence in all regions of the country. This asset will not only increase ATL's size and scale but will also take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022. The acquisition is a further demonstration of ATL's drive towards differentiated capability through inorganic growth, successful integration and making such assets value accretive, for long term sustainable value creation for its stakeholders," said Anil Sardana, MD and CEO of Adani Transmission Ltd.
Warora-Kurnool Transmission Ltd will develop, operate and maintain transmission lines aggregating to ~1,750 ckt km. The 765 kV inter-state transmission line links Warora– Warangal and Chilakaluripeta-Hyderabad–Kurnool with a 765/400 kV new sub-station at Warangal. The project was awarded through competitive bidding process on a build, own, operate, maintain basis.
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