Mumbai, Dec 21: Anil Ambani-led Reliance Infrastructure on Thursday announced the sale of its Mumbai distribution business for a deal value Rs 13,251 crore to Adani Transmission.
In October, the company confirmed that it has entered into exclusive talks with Adani Transmission for the sale of the distribution business and the agreement was valid up to mid-January next year.
“Reliance Infrastructure Ltd. (RInfra) today announced the signing of Definitive Binding Agreement with Adani Transmission Limited (ATL) for 100 per cent stake sale of its Mumbai Power Business which includes the integrated business of generation, transmission and distribution of power for Mumbai.
The total deal is valued at Rs 13,251 crore. This comprises business valued at Rs 12,101 crore and regulatory assets approved so far of Rs 1,150 crore,” Reliance Infrastructure said in a press statement.
This is the second attempt by Reliance Infrastructure to sell its distribution assets. Previously, the company was in talks with Canadian pension fund – Public Sector Pension Investment Board (PSP Investments) for the sale of a 49 per cent stake in the Mumbai distribution business. These talks, however, failed to culminate in a deal closure over valuation disagreements, according to sources with direct knowledge of these discussions.
In addition to the Rs 13,251 crore that Reliance Infrastructure would receive from Adani Transmission, the company is also expected to receive proceeds related to the regulatory assets under approval estimated at Rs 5,000 crore and net working capital on closing valued at Rs 550 crore.