Adani Group’s transmission arm Adani Transmission Ltd (ATL) on Wednesday informed about the execution of definitive agreement with Reliance Infrastructure Ltd (RInfra) for 100 per cent acquisition of Western Region System Strengthening Scheme’s (WRSSS) transmission assets and 74 per cent in Parbati Koldam Transmission Company Ltd (PKTCL).

The deal has put the enterprise value of WRSSS transmission assets of approx 3,100 circuit km at about ₹1,000 crore.

The announcement of the deal was made on October 5, subsequently, the Share Purchase Agreement (SPA) for WRSSS was executed between ATL and RInfra. The acquisition process is likely to complete in the calendar year 2017.

In a separate filing to the stock exchanges, RInfra also mentioned that SPA for Parbati Koldam Transmission Company shall be executed upon receipt of approval from Power Grid Corporation and other statutory approvals.

The recent SPA marks the 100 per cent acquisition of 3,100 circuit km of RInfra's WRSSS Transmission Assets B & C and 74 per cent in PKTCL. The transactions are subject to applicable regulatory approvals.

For RInfra, the proceeds from the sale will be utilised for debt reduction. SBI Capital Markets is acting as the financial advisors to RInfra for this transaction.

In its filing, Adani Transmission stated, “ATL has grown its wings in transmission sector with a commitment to maintain its important position in the transmission sector of the country. With this acquisition, ATL will enjoy substantial benefit of scale driving and is in sync with the deep-rooted strategy of ATL to enhance the value for the stakeholders through both organic as well as inorganic growth.”

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