Adani Power gets NCLT nod to to acquire Lanco Amarkantak Power for ₹4,101 crore

LAPL is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, as stated in a filing with the BSE.

Livemint
Published22 Aug 2024, 09:58 PM IST
Adani Power gets NCLT nod to to acquire Lanco Amarkantak Power for  <span class='webrupee'>₹</span>4,101 crore.
Adani Power gets NCLT nod to to acquire Lanco Amarkantak Power for ₹4,101 crore.(REUTERS)

Adani Power announced on Thursday that the Hyderabad bench of the National Company Law Tribunal (NCLT) has approved its plan to acquire Lanco Amarkantak Power Ltd (LAPL) with an upfront payment of 4,101 crore. LAPL is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, as stated in a filing with the BSE.

The acquisition is subject to the fulfillment of certain conditions outlined in the resolution plan. Upon completion, Adani Power will obtain 100% ownership of LAPL through a cash transaction.

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LAPL operates a 2x300 MW (600 MW) thermal power plant (Phase-I) located in Pathadi Village, Korba District, Chhattisgarh.

The majority of the power generated from the Phase-I capacity is supplied to the Haryana and Madhya Pradesh distribution companies through long-term power purchase agreements facilitated by Power Trading Corporation Ltd.

LAPL has secured a long-term fuel supply agreement of 2.784 MMT with South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Limited.

Additionally, LAPL is developing a 2x660 MW (1320 MW) expansion capacity under Phase II.

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The acquisition is expected to be finalized within 60 days of the National Company Law Tribunal’s approval order, by October 20, 2024.

LAPL's core objective, the generation of power, aligns with the main business focus of the company.

The successful acquisition and implementation of the resolution plan for LAPL will bolster APL’s position as India's leading private sector power producer, with a combined operational capacity of 15,850 MW, according to the statement.

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Furthermore, Adani Group plans to reduce its debt by decreasing promoter holdings in companies like Adani Power and Ambuja Cements, according to media reports.

According to the report, Adani Group's promoters are considering selling a 5 per cent stake in both Adani Power and Ambuja Cements.

After the report, Adani Power shares fell to their lowest point, dropping 1.2 per cent to 686.75.

(With inputs from PTI)

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First Published:22 Aug 2024, 09:58 PM IST
Business NewsCompaniesNewsAdani Power gets NCLT nod to to acquire Lanco Amarkantak Power for ₹4,101 crore

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