NEW DELHI: Gautam Adani-led Adani Power on Friday said it will acquire power plant operator DB Power at an enterprise value of Rs 7,017 crore. The Chhattisgarh-based DB Power, which owns and operates a running 2x600 MW thermal power plant in Janjgir Champa district, will help Adani Group to expand its offerings and operations in the thermal power sector in the state.
The largest private power company in the country said the initial term of the MoU will be till the completion of the acquisition on October 31, 2022, which could be extended by a mutual agreement. “Adani Power has agreed to acquire DB Power Limited (“DB Power”), which owns and operates a running 2x600 MW thermal power plant at District Janjgir Champa in Chhattisgarh,” the company said in a BSE filing.
DB Power, which was incorporated on October 12, 2006, is engaged in the business of establishing, operating and maintaining a thermal power generating station in Chhattisgarh. The turnover of the company during the last three financial years is Rs 3,488 crore (for FY 2021-22); Rs 2,930 crore (for FY 2020-21) and Rs 3,126 crore (for FY 2019-20), respectively.
Diligent Power Private Limited (DPPL) is the holding company of DB Power. Adani Power will acquire 100% of the total issued, subscribed and paid-up equity share and preference share capital of DPPL.“The proposed transaction is subject to receiving approval from the Competition Commission of India and any other approvals as may be identified following the due diligence exercise to be conducted with respect to DPPL and DB Power,” said the company.
DB Power has long- and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India and has been operating its facilities profitably, it added.
Deal of the day
DB Power, which was incorporated on October 12, 2006, is engaged in the business of establishing, operating and maintaining a thermal power generating station in the state of Chhattisgarh