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Adani Power to acquire 100% stake in KWPCL from Avantha Power & Infrastructure

05 Mar 2015 Evaluate

Adani Power (APL) has signed a definitive share purchase agreement for acquisition of 100% shares of Korba West Power Company (KWPCL) from Avantha Power & Infrastructure for which a binding term sheet was signed on November 24, 2014. Macquarie Capital was the sole advisor to the transaction.

KWPCL owns a completed 600 MW coal based power plant at Korba and an expansion phase, which is in progress. The company expects the transaction to be completed by June 30, 2015 subject to receipt of all requisite approvals from the various authorities. The enterprise value of this deal would be around Rs 4,225 crore, which would be paid by combination of acquisition debt and cash.

Adani Power is India’s largest private sector power generation company with a current operational capacity of 9,240 MW, comprising of 4,620 MW at Mundra in Gujarat, 3,300 MW at Tiroda in Maharashtra and 1,320 MW at Kawai in Rajasthan. The acquisition of 1200 MW Udupi power plant which is likely to achieve closing shortly and along with KWPCL, the installed thermal power generation capacity of APL will increase to 11,040 MW.

Adani Power Share Price

193.10 9.80 (5.35%)
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