New Delhi: Reliance Infrastructure Ltd (RInfra) on Thursday said its shareholders have given approval to the sale of integrated Mumbai power business to Adani Transmission Ltd for Rs18,800 crore.
RInfra and Adani Transmission had signed definitive binding agreement for 100% stake sale of the integrated business of generation, transmission and distribution of power for Mumbai in December 2017.
“Shareholders of RInfra have approved the proposed 100% sale of Reliance Infrastructure Limited integrated Mumbai Power Business to ATL. The resolution has been passed with 94% votes in favour of the proposal," the company said in a statement.
The Competition Commission of India (CCI) has already approved the transaction, it said.
“Total consideration value is estimated at Rs18,800 crore. Transaction is expected to be completed by March 2018, subject to approvals," the statement said.
RInfra said it will utilise the proceeds entirely to reduce its debt. “This is the largest ever debt-reducing exercise by any corporate. This monetization is a major step in Reliance Infrastructure Limited’s deleveraging strategy for future growth," it said.
RInfra’s Mumbai power business (known as Reliance Energy) is India’s largest private sector integrated power utility distributing power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq. km, it said. It caters to a peak demand of over 1,800 MW, with annual revenues of Rs7,500 crore with stable cash flows, it added.
The company said it will focus on upcoming opportunities in asset light EPC and defence businesses.
RInfra is one of the largest infrastructure companies in India, developing projects through various special purpose vehicles (SPVs) in several high growth sectors such as power, roads and metro rail in the Infrastructure space and the defence sector.