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Gautam Adani's Adani Power to acquire DB Power for Rs 7,017 cr

Gautam Adani's Adani Power to acquire DB Power for Rs 7,017 cr

DB Power owns and operates two units of 600 MW thermal power plant at Chhattisgarh’s Janjgir Champa District.

Gautam Adani's Adani Power to acquire DB Power for Rs 7,017 crore Gautam Adani's Adani Power to acquire DB Power for Rs 7,017 crore

Gautam Adani-led Adani Group’s subsidiary, Adani Power Limited, on Friday, announced it will acquire DB Power Limited for an enterprise value of Rs 7,017 crore, the company revealed in a regulatory filing.

Adani Group’s power flagship, with this acquisition, aims to expand its offerings and operations in the thermal power sector in the state. DB Power owns and operates two units of 600 MW thermal power plant in Chhattisgarh’s Janjgir Champa District. Diligent Power (DPPL) is the holding company of DB Power.

Adani Power’s this acquisition’s initial term of the MoU would be till October 31, 2022, but can be extended further on mutual agreement, revealed the filing.

Adani Power will hold 100 per cent of the total issued, subscribed, and paid-up equity share capital and preference share capital of DPPL. While DPPL will hold 100 per cent of DB Power on the closing date of the transaction, it further added.

The proposed transaction is subject to receipt of approval from the Competition Commission of India and any other approvals as may be identified following the due diligence exercise to be conducted concerning DPPL and DB Power.

DB Power, which was incorporated in October 2006, is engaged in the business of establishing, operating, and maintaining a thermal power generating station in Chhattisgarh. It also has long and medium-term Power Purchase Agreements for 923.5 MW of its capacity, backed by Fuel Supply Agreements with Coal India Limited, and has been operating its facilities profitably.