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Adani Transmission has inked a share purchase pact with Adani Ports and Special Economic Zone to acquire MPSEZ Utilities (MUL) for Rs 116.27 crore, as per a regulatory filing.
“Adani Transmission has signed Share Purchase Agreement with Adani Ports and Special Economic Zone Limited (APSEZ) on 15th December, 2021 for acquisition of MPSEZ Utilities Limited,” the filing said.
The estimated cost of acquisition is Rs 116.27 crore.
MUL was incorporated primarily for distribution of electricity, and effluent and sewage treatment in Mundra SEZ area, Kutch, Gujarat spread across 8,481 hectares as a distribution licensee.
The deal will be concluded within five days subject to completion of other conditions precedent (CPs) as per the share purchase agreement, it added.
Adani Transmission will acquire 13,135,000 (100 per cent) equity shares of Rs 10 each of MUL.
Presently, total distribution network of MUL is around 100 kms, comprising 75 kms underground and 25 kms overhead network.
MUL distributes about 300 MUs (million units), with distribution losses of 3.46 per and has a medium-term power purchase arrangement.
The load at its distribution area is expected to grow, as more industrial and commercial activities get added in MUL’s geography of operations.