Adani company gives up bid to acquire DB Power; 2nd setback after withdrawing FPO
MUMBAI: Adani Power’s planned Rs 7,017-crore acquisition of DB Power collapsed on Wednesday as the deadline to complete the transaction expired.
The development comes as Gautam Adani’s conglomerate reviews capital expenditure plans in the wake of a massive sell-off of his companies’ shares, triggered by a scathing report by the US-based Hindenburg Research on January 24.
Adani Power had signed a purchase agreement for DB Power on August 18, 2022, and planned to conclude the deal by October 31, 2022. The deadline was repeatedly extended. DB Power owns a 1,200-megawatt coal-fired power plant in Janjgir Champa, Chhattisgarh, and its enterprise value including debt was estimated at Rs 7,017 crore.
