KEC International has signed a share purchase agreement (SPA) with Adani Transmission Ltd for selling its entire stake in KEC Bikaner Sikar Transmission Pvt Ltd at an enterprise value of around Rs. 227.50 crore. The deal is subject to regulatory and other approvals, KEC International said in a statement. This sale is in line with KEC’s strategy to focus on its core EPC business, the company said.
This acquisition will take the total power transmission network of Adani Transmission Ltd to around 12,923 ckm; ATL will continue to be the largest private transmission utility in the country.
KEC Bikaner Sikar Transmission Pvt Ltd, a wholly-owned subsidiary of KEC International, has a 400kV operational transmission line of 344 ckm, running from Bikaner to Sikar, in Rajasthan. This 25-year concession was won by KEC through the tariff-based competitive bidding mechanism. The project was commissioned in December 2017, four months ahead of the scheduled completion date, and has been in operation since.
According to a statement from Adani Transmission Ltd (ATL), with completion of all ongoing projects, acquisition of Reliance Infrastructure’s integrated business and the under-acquisition project of KEC, the total network of ATL will be around 12,923 ckm, divided into 10,357 ckm operational assets (including KEC’s Rajasthan asset) and around 2,566 ckm under-construction assets.
By the end of 2018, ATL will have 35 substations with around 19,300 MVA of transformation capacity across the country. Adani Transmission Ltd will continue to be the largest private sector transmission company in the country, the company said.
Acquisition of RInfra business: It may be recalled that in August this year, Adani Transmission Ltd acquired Reliance Infrastructure’s integrated business of generation, transmission and retail electricity distribution. The deal worth Rs.18,800 crore, was in the making since December 2017. The newly-acquired business has been housed in a new entity Adani Electricity Mumbai Ltd, a subsidiary of Adani Transmission Ltd.
(Featured photograph, sourced from KEC International, shows an element of the 400kV Bikaner-Sikar transmission line.)
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