"Further to announcement on October 5, 2016, Adani Transmission Ltd executes the definitive document, i.e. the share purchase agreement (SPA) with Reliance Infrastructure Limited(R-Infra) for 100 per cent acquisition of Western Region System Strengthening Scheme (WRSSS) transmission assets of approximate 3100 Ckt Km," Adani Transmission said in a statement.
The enterprise value of WRSSS transmission business is Rs 1,000 crore, the statement said, adding the transaction is subject to various regulatory and applicable statutory approvals, including from the Competition Commission of India.
It said that transmission network of Adani Transmission set to reach 10350 Ckt km on completion of acquisition of R-Infra's WRSSS transmission assets.
Adani Transmission (ATL) has grown its wings in transmission sector with a commitment to maintaining its important position in the country's sector, the company said.
With this acquisition, ATL will enjoy substantial benefit of scale driving and is in sync with the deep-rooted strategy of ATL to enhance the value for the stakeholders through both organic as well as inorganic growth.
RInfra in a statement said that the agreement for Parbati Koldam Transmission Company (PKTCL) shall be executed upon receipt of approval from Power Grid Corporation of India (PGCIL) and other statutory approvals, Under the transaction, Adani Transmission will acquire 74 per cent ownership in PKTCL. The transactions are subject to applicable regulatory approvals.
"The deal excludes the expected upside from regulatory proceeds of various appeals of the assets," the company said.
RInfra owns the country's first 100 per cent private sector transmission project - WRSSS B & C projects located in Maharashtra, Gujarat, Madhya Pradesh and Karnataka.
RInfra owns 74 per cent in PKTCL located in Himachal Pradesh and Punjab in joint venture with PGCIL.
"All three transmission projects are completed and revenue generating. The entire sale proceeds shall be utilised for debt reduction," the company said.
ATL has six fully operational Transmission Systems that primarily serve the northern and western regions and is also constructing additional projects of around 1900 Ckt km in Rajasthan, Chhattisgarh, Madhya Pradesh, Maharashtra, Jharkhand & Bihar, which were awarded through Tariff Based Competitive Bidding process.
With completion of all ongoing projects along with this signing of this SPA, the network of ATL is expected to increase from around 5450 Ckt Kms to 10350 Ckt Kms, ATL said.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)