Adani Power has extended the long stop date for completing the proposed acquisition of DB Power Ltd, to February 15, 2023.
Adani Power has extended this long stop date on several occasions, beginning from the originally announced October 31, 2022.
In August 2022, Adani Power first announced its intention to acquire DB Power Ltd that owns and operates an operational 2×600-mw coal-fired power plant in Janjgir-Champa district of Chhattisgarh.
DB Power has long and medium-term power purchase agreements for 923.5 mw of its capacity, backed by fuel supply agreements with Coal India Ltd. DB Power has been operating this plant profitably, Adani Power observed in the filing.
Citing the rationale of the acquisition, Adani Power said that it would expand the company’s offerings and operations in the thermal power sector in the state of Chhattisgarh.
Incorporated in 2006, DB Power Ltd had recorded sales turnover of Rs.3,488 crore in FY22, up from Rs.2930 crore in FY21.
Also read: Adani Power To Acquire DB Power For Rs.7,000 Crore
It may be mentioned that Diligent Power Pvt Ltd is the holding company of DB Power Ltd.
The acquisition is expected to have an enterprise value of around Rs.7,017 crore and the deal closure is subject to customary approvals.