Qatar Investment Authority Acquires 25.10 % Stake In Adani Electricity Mumbai Lmt

Adani Transmission Limited (ATL) has announced that Qatar Investment Authority (QIA) has completed the acquisition of a 25.10 percent stake in Adani Electricity Mumbai Limited (AEML) from ATL along with an investment in shareholders subordinated debt in AEML (Transaction) on February 10, 2020.

The total QIA investment in AEML is approximately Rs 3,220 Crore (approximately USD 452 million), which includes equity consideration of approximately Rs 1,210 Crore (approximately USD 170 million) and shareholder subordinated debt of USD 282 million (approximately Rs 2,010 Crore).

AEML is the licensee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers across a license area of approximately 400 square kilometers in the city of Mumbai. The firms’ market share of Mumbai is approximately 87 percent by license area, 67 percent by consumers served and 55 percent by electricity supplied.

The definitive agreements for the Transaction were signed on December 11, 2019, and all the requisite approvals were received subsequently. AEML has recently completed an investment grade, USD 1 billion bond issuance, the first by a private integrated utility from India. The issue generated significant interest from international investors and was oversubscribed by 5.9x.

The entire equity proceeds of 25.1 percent stake sale in AEML has been used by ATL towards the return of the Perpetual to the tune of Rs 1,209.62 Crore in favour of contributory promoter entity. Perpetual was infused by the Promoter entity to acquire AEML. Post return of Rs 1,209.62 Crore, Promoter Perpetual outstanding has got reduced to Rs 2,544.38 Crore.

Business | News published on 11/02/2020 by Darshana Daga

 
 
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