MUMBAI: Anil Ambani led Reliance Infrastructure (RInfra) on Thursday said that it has received Maharashtra Electricity Regulatory Commission’s (MERC) nod to sell 100 per cent stake in its integrated Mumbai power business to Adani Transmission Ltd (ATL).
The total consideration value of the deal is estimated at Rs 18,800 crore and following the commission’s nod, the transaction is expected to be closed in July 2018.
“MERC had concluded its hearing into the matter and reserved its order on June 14, 2018. RInfra has already received the approval of Competition Commission of India (CCI) and its shareholders for the deal,” RInfra said.
The company said that it will utilise the fund entirely to reduce its debt, becoming debt-free and up to Rs 3,000 crore cash surplus. “This is the largest ever debt reducing exercise by any corporate. This monetisation is a major step in Reliance Infrastructure Ltd deleveraging strategy for future growth,” RInfra said.
Going forward, RInfra will focus on upcoming opportunities in asset light Engineering, Procurement, and Construction, and Defence businesses.
RInfra and ATL had signed Definitive Binding Agreement for 100 per cent stake sale of the integrated business of generation, transmission and distribution of power for Mumbai in December 2017.
The Mumbai power business (known as Reliance Energy) is India’s largest private sector integrated power utility, distributing power to nearly three million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq km. It caters to a peak demand of over 1,800 MW, with annual revenues of Rs 7,500 crore with stable cash flows.