Adani Transmission Ltd on Saturday said it has entered into a pact with Essel Infraprojects to acquire Warora-Kurnool Transmission Ltd (WKTL) for an enterprise value of Rs 3,370 crore.
The acquisition is in sync with Adani Transmission's strategy to enhance the value for its stakeholders, through organic as well as inorganic opportunities, ATL said in a statement.
ATL, India's largest private sector power transmission and retail distribution company, has signed definitive agreements with Essel Infraprojects Limited (EIL) for the acquisition, it said.
The regulatory approval for substitution of original awardee in the contract by ATL has already been received from the Central Electricity Regulatory Commission.
The lenders consent and other necessary regulatory approvals shall be obtained before closure of transaction, the company said.
With this acquisition, which is valued at an enterprise value of Rs 3,370 crore, the cumulative network of ATL will reach 17,200 ckt km (circuit kilometres), out of which 12,350 ckt km is already operational and 4,850 ckt km (including this asset) is in various stages of execution.
With this enhanced scale of operations, ATL will enjoy substantial benefits in terms of cost optimisation and shared resources and will also fortify its position of being the largest private sector transmission company in the country, the statement said.
Anil Sardana, MD and CEO, Adani Transmission Ltd, said, "The acquisition of WKTL will bolster ATL’s pan-India presence, consolidating further its position as the largest private sector transmission company in India. This strategic West to South 765 KV interconnector with Substation in Southern India, completes ATL presence in all regions of the country."
This asset will not only increase ATL's size and scale but will also take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022, he said.
"The acquisition is a further demonstration of ATL’s drive towards differentiated capability through inorganic growth, successful integration & making such assets value accretive, for long term sustainable value creation for its stakeholders," Sardana said.
Warora-Kurnool Transmission Ltd will develop, operate and maintain transmission lines aggregating to 1,750 ckt km. The 765 kV inter-state transmission line links Warora–Warangal and Chilakaluripeta-Hyderabad–Kurnool with a 765/400 kV new sub-station at Warangal.
The project was awarded through competitive bidding process on a build, own, operate, maintain basis.