Reliance Infrastructure (RInfra) said the Competition Commission of India (CCI) has approved sale of its integrated Mumbai power business to Adani Transmission in a Rs 18,800 crore deal.
RInfra and Adani Transmission had signed a definitive binding agreement for 100 per cent stake sale of the integrated business of generation, transmission and distribution of power for Mumbai in December 2017, RInfra said in a statement.
According to the statement, total consideration value is estimated at Rs 18,800 crore. The transaction is expected to be completed by March 2018.
RInfra will utilise the proceeds of this transformative transaction entirely to reduce its debt. This is the largest ever debt reducing exercise by any corporate.
This monetization is a major step in RInfra’s deleveraging strategy for future growth.
Reliance Infrastructure’s Mumbai power business (known as Reliance Energy) is India’s largest private sector integrated power utility distributing electricity 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 Rs 7,500 crore with stable cash flows.
RInfra will focus on upcoming opportunities in asset light EPC (engineering procurement and construction) and defence businesses, it added.