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Vedanta to acquire Meenakshi Energy for ₹1,440 crore
The company said it will acquire the debt-ridden Meenakshi Energy for a consideration of ₹1,140 crore.
Anil Agarwal led Vedanta Ltd on Wednesday said it has been declared successful bidder for debt ridden Meenakshi Energy Limited, in a regulatory filing.
The company said it will acquire the debt-ridden Meenakshi Energy for a consideration of ₹1,140 crore.
"Vedanta Limited shall acquire 100% of the paid-up capital and management control of Meenakshi Energy Limited," said Vedanta in its regulatory filing.
According to the filing, Vedanta said that of the total consideration, the company will pay ₹312 crores upfront and balance ₹1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy to the financial creditors. The consideration will mature in five equal instalments over a period of five years.
"Balance INR 1,128 Cr in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy Limited to the Financial Creditors to be repaid in 5 equal installments over a period of 5 years starting from the end of 2nd year," said Vedanta in its filing.
The acquisition will be completed by FY 2024. However, the approval of National Company Law Tribunal (NCLT) is pending.
Meenakshi Energy Limited is a 1000 MW power plant located at Nellore district of Andhra Pradesh, India. The company was admitted in the insolvency process on 7 November, 2019. The bid submitted by Vedanta Limited was approved by the committee of creditors vide Letter of Intent dated 18 January, 2023.
The shares of Vedanta Ltd closed 2.08 per cent higher at ₹324.10 apiece on BSE.
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First Published:18 Jan 2023, 08:56 PM IST
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