Adani Power on Friday said it will acquire DB Power Ltd, which owns and operates a 2 x 600 MW thermal power plant at district Janjgir Champa in Chhattisgarh, at an enterprise value of Rs 7,017 crore for cash consideration.
DB Power has long-and-medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Ltd, and has been operating the units profitably, Adani Power said. The cost of the acquisition is subject to adjustments on the closing date.
Adani Power will acquire 100 per cent of the total issued, subscribed and paid up equity share capital and preference share capital of Diligent Power Private Limited (DPPL). DPPL is the holding company of DB Power, and had a turnover of Rs 0.19 crore in 2021-22. About the timeline for the acquisition, the company said the initial term of the agreement to buy shall be till October 31, 2022, which may be extended by mutual agreement.
