Reliance Infrastructure has signed a non - binding Term Sheet with the Public Sector Pension Investment Board (PSP Investments), one of the largest pension fund managers in Canada with C$112.0 billion of net assets under management as of March 31, 2015, in relation to the acquisition by PSP Investments of a 49% equity stake in the Company’s integrated power generation, transmission and distribution business in the city of Mumbai and adjoining areas. The specified business is to be carved out on a going concern basis into a separate SPV, in which the company will own the controlling 51% stake, and PSP Investments will own 49%.
The Parties have entered into exclusivity agreement valid till March 31, 2016. The proposed Transaction is subject to due diligence, definitive documentation, applicable regulatory and other approvals and certain other conditions. Accordingly, there can be no certainty that a Transaction will result. Further announcements will be made at an appropriate stage.
The company’s Mumbai Power business (known as Reliance Energy) distributes power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq km and catering to a peak demand of over 1,800 MW, with revenues of Rs 7,700 crore in FY 2014-15.
Reliance Infrastructure is the largest power distribution licensee in Mumbai, with 25 years license to distribute electricity in its licensed distribution areas spread over 400 Sq. Kms. in the suburbs and surrounding areas of Mumbai, and supplying power to around 29 lakh consumers.
| Company Name | CMP |
|---|---|
| NTPC | 393.65 |
| Tata Power | 427.45 |
| Adani Power | 198.40 |
| Power Grid Corp | 318.05 |
| Torrent Power | 1565.30 |
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