Ahmedabad (Gujarat) [India], Mar 27 (ANI): Adani Transmission Ltd (ATL) said on Saturday it has signed definitive agreements with Essel Infraprojects Ltd (EIL) for the acquisition of Warora-Kurnool Transmission Ltd (WKTL).
ATL's acquisition values the enterprise valuation of the target at Rs 3,370 crore. The regulatory approval for substitution of the original awardee in the contract by ATL has already been received from Central Electricity Regulatory Commission.
The lender's consent and other necessary regulatory approvals will be obtained before the closure of the transaction. The acquisition is in sync with ATL's strategy to enhance the value for its stakeholders through organic as well as inorganic opportunities.
With this acquisition, the cumulative network of ATL will reach 17,200 circuit km 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 said it will enjoy substantial benefits in terms of cost optimisation and shared resources. This will also fortify its position of being the largest private sector transmission company in the country.
ATL's Managing Director and CEO Anil Sardana said this strategic west to south 765 KV interconnector with a substation in southern India completes the company's presence in all regions of the country.
"This asset will not only increase ATL's size and scale but will also take it closer to the target of setting up 20,000 ckt km of transmission lines by 2022," he said in a statement.
"The acquisition is a further demonstration of ATL's drive towards differentiated capability through inorganic growth, successful integration and making such assets value accretive for long-term sustainable value creation for its stakeholders."
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 a competitive bidding process on a build, own, operate, maintain basis.