Adani Transmission Ltd (ATL) on Monday said it has signed a share purchase agreement with REC Power Development and Consultancy Ltd to acquire its entire stake in MP Power Transmission Package-II Limited (MPPTPL) in a cash transaction. However, the company didn't disclose the acquisition cost.
MPPTPL consists of more than 1,000 circuit km of transmission lines and air-insulated substations of various voltage levels in 18 districts of Madhya Pradesh.
ATL, in an exchange filing, said that with a capex of Rs 1,200 crore, its execution of the project would strengthen the transmission system in Eastern Madhya Pradesh.
"This acquisition is in sync with the company's strategy to enhance the value for its stakeholders through organic and inorganic opportunities," it said.
With this, the cumulative transmission network of ATL will reach more than 18,300 circuit km of transmission line and more than 33.100 MVA transformation capacity, out of which more than 13,000 circuit km and more than 18.400 MVA are under steady-state operation.
ATL also operates a distribution business serving about 3 million customers in Mumbai.
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