NEW DELHI: Gautam Adani-owned Adani Power Limited has agreed to procure the thermal power assets of DB Power Limited (DBPL) for about Rs Rs 7,017 crore enterprise valuation, Adani Power announced on Friday.
An agreement for the all-cash transaction was signed by both parties on Friday. The MOU's original period is from now until the acquisition is complete on October 31, 2022, although it may be extended if both parties agree. In the Chattisgarh district of Janjgir-Champa, DB Power operates 2 thermal power plants, each with a capacity of 600 MW.
"The acquisition would help the company to grow its offerings and operations in the thermal power sector in the state of Chhattisgarh," Adani Power said in its regulatory filing. The proposed transaction is subject to clearance from the Competition Commission of India and any other permissions that may be required as a result of the DPPL and DB Power due diligence that will be completed, it was said
The total issued, subscribed, and paid-up equity share capital as well as preference share capital of DPPL shall be held entirely by Adani Power. While on the day the transaction closes, DPPL will own 100% of DB Power. DB Power's holding company is called Diligent Power (DPPL).
DB Power currently has fuel supply agreements with Coal India backing long- and medium-term Power Purchase Agreements for 923.5 MW of its capacity, and has been successfully running its facilities.
On October 12, 2006, DB Power was formally incorporated under the control of the Registrar of Companies in Gwalior. For the previous three fiscal years, DB Power's revenue was 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).
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