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Adani Energy Solutions completes acquisition of Essar’s Operational Mahan-SipatTransmission assets

  • Adani Energy Solutions Limited (AESL) through its wholly owned subsidiary Adani Transmission Step-Two Limited (ATSTL) acquired a 100% stake in Essar Transco Limited, which houses operational Mahan-Sipat transmission assets for an Enterprise Value of INR 1,900 crores.
  • This acquisition will add 673 ckt kms, 400 kV inter-state transmission linetaking the cumulative network of AESL tomore than 21,000 cktkms
  • Contemporaneous to the acquisition, ATSTL raised financing at the most competitive terms setting a new benchmark for financing the operational assets under AESL.

Ahmedabad, 16 May 2024:Adani Energy Solutions Ltd (AESL), the largest private transmission and distribution company in India with a growing smart metering portfolio, has acquired 100% stake in Essar Transco Limited after obtaining requisite regulatory and other approvals for an Enterprise Value of INR 1,900 crores. The share acquisition is pursuant to definitive agreements signed in June, 2022.

The acquisition covers fullyoperational 400 kV,673 ckt kms inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh. The project operates under the Central Electricity Regulatory Commission (CERC) regulated return framework and was commissioned on 22 Sep 2018.

In accordance with AESL’s capital management philosophy, ATSTL also raised afinancingat the most competitive terms.This establishes a new benchmark for AESL toraise capital and unlocks the lower cost debt for itsoperational assets. The financing exemplifiesthe quality of AESL’s utility cashflows with a long-term license life, well supported through stable regulatory framework. MUFG Bank the sole lender for the financing.

The acquisition of Mahan-Sipattransmission networkwill consolidate AESL’s presence in central India with 4 operating assets having 3,373ckt km in the region. The acquisition is consistent with theAESL’s philosophy of augmenting its existing capacities and bringing in efficiency through operational synergies and creating network effect.Along with a robust energy demand, theability to recognize and tap market opportunities within the areas of interest continues to propel and positionAESL at the forefront of energy transition in India.