Adani Transmission Ltd (ATL) recently signed a share purchase agreement with group company Adani Ports & Special Economic Zone Ltd (APSEZ) for the acquisition of MPSEZ Utilities Ltd.
In a stock exchange communication, ATL said that it would be acquiring 100 per cent equity currently held by APSEZ in MPSEZ Utilities Ltd, for a consideration of Rs.116.27 crore. The cost of acquisition is Rs.116.27 crore, arrived at on the basis of a report of independent valuers.
MPSEZ Utilities Ltd (MUL) was incorporated in July 2007 primarily to provide facility of distribution of electricity, effluent & sewage treatment in Mundra SEZ area, Kutch, Gujarat spread across 8,481 ha as a distribution licensee.
“With this acquisition, ATL will be able to leverage its Technical Competency and Customer Management to optimize the cost and improve the efficiency,” ATL said.
The acquisition is expected to be formalized by around December 20, 2021, subject to completion of conditions precedent envisaged in the share purchase agreement.
MUL Network
Currently the total electricity distribution network MUL is around 100 km comprising of 75 km underground and around 25 km overhead lines. MUL distributes about 300 million kwh (million units or MU), with distribution losses of around 3.46 per cent. MUL has a medium-term power purchase arrangements, the filing said.
“The load at its distribution area is expected to grow, as more industrial and commercial activities get added in MUL’s geography of operations,” Adani Transmission said.
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MUL’s equity share capital is Rs.1,313.50 lakh and the company reported sales turnover of Rs.203.31 crore in FY21.
“ATL and APSEZ are entities having common promoter group and the acquisition is being made at arm’s length based on independent valuation reports,” the filing by Adani Transmission said
