Indian billionaire Gautam Adani's energy unit, Adani Power, has entered into a definitive agreement to acquire a 1,370-megawatt thermal power plant backed by debt-laden GMR Infrastructure. However, the company did not disclose the financial details of the deal.
In a statement, GMR Infrastructure on Thursday said it has entered into a definitive agreement with Adani Power to sell its entire 47.62 per cent stake in GMR Chhattisgarh Energy (GCEL), held by its wholly-owned subsidiary, GMR Generation Assets Limited (GGAL).
"The consortium of lenders of GCEL adopted the "change in management" as a resolution plan (RP) in accordance with the guidelines issued by the Reserve Bank of India. Lenders followed a detailed bidding process and selected APL as the final bidder," GMR Infrastructure said in a filing to the Bombay Stock Exchange.
GMR Chhattisgarh Energy has received 100 per cent approvals of all lenders for implementation of the RP, it said. As on March 31, 2019, the Chhattisgarh plant had an outstanding debt of Rs 5,926 crore.
Following the transaction, Adani Power will own 100 per cent in the unit as it would buy 52.38 per cent stake from the lenders led by Axis Bank, and the remaining 47.62 per cent from the GMR Group.
The infrastructure conglomerate further said that the implementation of the resolution plan will lead to a significant deleveraging for the GMR group.
Following the stake sale, GMR Infrastructure's profitability is expected to improve significantly considering GIL consolidated profit for FY19 was adversely impacted by Rs 516 crore on account of Chhattisgarh Power Plant, it said.
"The corporate guarantees to the extent of Rs 892 crore furnished by GMR group companies - GMR Energy Ltd, GGAL and GMR Power Corporation Ltd shall be released," it added.
On May 3 earlier this year, the GMR group agreed to sell 768 MW gas-based Rajahmundry power plant in Andhra Pradesh.
Ahead of the announcement, shares of GMR Infrastructure closed trade at Rs 15.14 apiece, up 0.13 per cent, on the Bombay Stock Exchange on Thursday.
Edited by Chitranjan Kumar