Indian power and energy company Adani Power has agreed to acquire domestic peer DB Power for an enterprise value of Rs70.17bn ($878.7m), subject to certain adjustments.
Incorporated on 12 October 2006, DB Power establishes, operates and maintains thermal power generating stations in the country. The company’s portfolio includes two units of 600 MW thermal power at district Janjgir Champa in the state of Chhattisgarh.
In the financial year 2021-22, DB Power had a turnover of Rs34.88bn ($436.8m).
As agreed, Adani Power will buy 100% of the total issued, subscribed and paid-up equity share capital and preference share capital of DB Power’s holding company Diligent Power Private Limited (DPPL) in an all-cash deal.
The initial term of the memorandum of understanding (MoU) will end on 31 October 2022. This can be extended through a mutual agreement between the parties.
In a stock exchange filing, Adani Power said: “The acquisition does not fall within related party transactions. Also, the promoter/promoter group have no interest in DB Power.”
The deal is expected to bolster Adani Power’s operations in the state of Chhattisgarh and expand its offerings.
The completion of the transaction is subject to regulatory approval from the Competition Commission of India. It may also require other potential approvals which may be identified following the due diligence exercise regarding DPPL and DB Power.
A part of the diversified Adani Group, Adani Power is one of the largest private thermal power producers in India. According to its website, the company’s portfolio includes thermal power plants in several Indian states and a 40MW solar power project in Gujarat.
