The acquisition of KEC Bikaner Sikar Transmission will increase the Adani Transmission's cumulative network to around 12,923 km / h. Photo: Reuters
New Delhi: Power company Adani Transmission (India) Ltd has signed an agreement to buy a total stake in the power transmission arm of Rajasthan-based KEC International Ltd. with a business value of ₹ 227.5 million. "We would like to inform you that the company has entered into a share purchase agreement with KEC International Ltd on November 3, 2018 for the acquisition of its entire stake in KEC Bikaner Sikar Transmission Pvt. Ltd," Adani Transmission said in a regulatory filing.
KEC Bikaner Sikar Transmission Pvt. Ltd (KBSTPL) comprises 400 KV D / C Bikaner-Sikar Line of 344 kilometers of circuit. The project was awarded to the company through competitive bidding and commissioned in December 2017.
Adani Transmission said that KBSTPL's share acquisition cost is a company value of ₹ 227.5 million subject to customary closing adjustments.
The company has entered into a contract to acquire all of KEC International's shareholdings representing 99.99% of total issued, paid and subscribed share capital and preferred shares representing 100% of the total issued, paid-in and subscribed capital of KBSTPL. "
The acquisition will increase the company's accumulated network to about 12,923 (ckt) km of circuit, of which approximately 10,357 km2 are in operation and 2,566 km in various stages of construction.
The sale is subject to the approval of Rajasthan Rajya Vidyut Prasaran Nigam Ltd and, according to KEC International's note, is expected to be completed by the end of this year.
On Friday, Adani Transmission shares rose 0.54% to ¥ 178.10 each, while shares of KEC International gained 3.54% to ₹ 305.6 in BSE. The Sensex benchmark gained 1.68% to end the day with 35,011.65 points.