Kalpataru Power Transmission Ltd has announced execution of the share purchase agreement (SPA) to sell its entire stake in Jhajjar KT Transco Pvt Ltd to India Grid Trust (“IndiGrid”).
The total Enterprise Value (EV) of JKTPL is about Rs.310 crore. The transaction is subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction. The transaction is also subject to requisite approvals and compliances.
JKTPL is a joint venture between KPTL and Techno Electric & Engineering Company Ltd (TEECL) wherein KPTL is currently holding 49.72 per cent equity.
JKTPL, it may be mentioned, is the first power transmission project secured by KPTL and TEECL on DBFOT basis. The project comprises of three 400kV power transmission lines and two 400kV and substations in Haryana.
Commenting on the asset sale, Manish Mohnot, Managing Director & CEO, KPTL said, “This transaction is a major milestone and example of an accretive capital allocation process that KPTL has employed over the past several years. We are also progressing well on sale of other T&D assets and expect to close the same in FY21. Divestment of T&D assets will strengthen our EPC business and will allow us to focus on growth opportunities and deliver value to our shareholders. KPTL remains committed to its target of being a debt free company by FY 2021 and build a robust EPC business.”
In July 2019, it may be recalled, KPTL had announced that it has entered into binding agreements with CLP India Pvt Ltd to sell its stake in three power transmission assets, in a deal that is estimated at Rs.3,275 crore. The transaction is subject to requisite approvals and compliances.
The assets to be divested included: Kalpataru Satpura Transco Pvt Ltd (KSTPL); Alipurduar Transmission Ltd (ATL) and Kohima Mariani Transmission Ltd (KMTL).
Featured photograph for illustration only
