Metal mining conglomerate Vedanta Ltd on Thursday said it will acquire debt-ridden Athena Chhattisgarh Power Ltd for Rs 564.67 crore.
Liquidation process for the company was initiated in March last year. The acquisition for a purchase price of Rs 564.67 crore is expected to be completed in the ongoing financial year, adding that the consideration will be in the form of cash. "Vedanta Limited to acquire 100 percent of the paid-up capital of Athena Chhattisgarh Power Ltd," the metals and mining major said in a filing to BSE.
The acquisition will fulfill the power requirement for Vedanta aluminium business and through vertical integration, add synergies by providing a cost advantage pertaining to power consumption. Athena Chhattisgarh Power Ltd has a 1,200 MW coalbased power plant located at Jhanjgir Champa district in Chhattisgarh. Athena was admitted under Corporate Insolvency Resolution Process on May 15, 2019.
On May 13 last year, a bench of NCLT Hyderabad directed initiation of the liquidation process of the company. The unit 1 and unit 2 of the power plant are 80 percent and 30 percent complete, respectively. Therefore, the company has never been operational, the filling said.
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