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RInfra, Adani may close Reliance Energy Mumbai sale by July

Indo Asian News Service

Mumbai, June 14 (IANS) The Maharashtra Electricity Regulatory Commission (MERC) on Thursday completed its hearing in the proposed 100 per cent stake sale of Reliance Infrastructure Ltd (RInfra)'s integrated Mumbai power business to Adani Transmission Ltd (ATL), an official spokesperson said.

The MERC's order in the matter is likely over the next few weeks and the two companies expect to close the transaction, estimated at Rs 18,800 crore, next month.

The RInfra has already secured the approval of Competition Commission of India and its own shareholders for the deal.

The RInfra and ATL signed a Definitive Binding Agreement for 100 per cent stake sale of the integrated business of generation, transmission and distribution of power for Mumbai last December.

The RInfra will utilise the proceeds of this transformative transaction 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 in the country and the monetisation is a major step in RInfra's de-leveraging strategy for future growth.

The RInfra's Mumbai power business, Reliance Energy, is India's largest private sector integrated power utility distributing power to nearly three million residential, industrial and commercial consumers in Mumbai suburbs over 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.

Going forward, RInfra will focus on upcoming opportunities in asset light EPC and defence businesses.

For its defence business, the company has set up the Dhirubhai Ambani Aerospace Park at MIHAN in Nagpur to manufacture the Rafale fighter jets with French collaboration, besides the Reliance Naval & Engineering Ltd, which houses India's largest dry dock facility to build warships and other naval ships.

--IANS

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