Adani Transmission Limited (ATL), AEML and a subsidiary of Qatar Investment Authority (QIA) have signed definitive agreements for the sale of a 25.1 percent stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML.
Adani Transmission Ltd (ATL) has decided to sell 25.1 percent stake in its subsidiary Adani Electricity Mumbai Ltd (AEML) to Qatar Investment Authority (QIA) for Rs 3,200 crore.
In a regulatory filing, the company said ATL, AEML and a subsidiary of QIA have signed definitive agreements for the sale of a 25.1 percent stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML.
The total QIA investment in AEML will be approximately Rs 3,200 crore (equivalent to approximately $450 million), the company said.
As part of the transaction, ATL and QIA have agreed on definitive plans to ensure that over 30 percent of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023.
In addition, ATL and QIA have agreed on a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy.
AEML is the licensee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers across a licence area of approximately 400 square kilometres in the city of Mumbai.
“Together, we will continue to work towards improving the reliability of supply and consumer satisfaction for over 3 million AEML consumers served in Mumbai. We believe this transaction is a significant step in the journey of the Adani Group, marking the start of a long-term partnership with QIA,” said Gautam Adani, Chairman, Adani Group.
The transaction is expected to complete in early 2020 subject to receipt of regulatory approvals and satisfaction of customary conditions precedent.
SKN Advisors Limited acted as financial advisor and Cyril Amarchand Mangaldas acted as legal advisor to ATL and AEML on the transaction, the company said adding that JP Morgan acted as financial advisor and Cleary Gottlieb Steen & Hamilton LLP and AZB & Partners acted as legal advisors to QIA on the Transaction.
AEML’s market share of Mumbai is approximately 87 percent by licence area, 67 percent by consumers served and 55 percent by electricity supplied.
First Published: IST