Mumbai: Reliance Infrastructure (RINfra) on Tuesday said it has entered into a period of exclusivity with Adani Transmission until January 15, 2018, for the proposed sale of the Mumbai City power business. “RInfra has entered into a period of exclusivity until January 15, 2018, for the proposed sale of its integrated business of generation, transmission and distribution of power for Mumbai City to Adani Transmission Limited (ATL),” a Reliance statement said here.
“The proposed transaction is subject to confirmatory diligence, definitive documentation, and customary approvals. “Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage.” RInfra said it intends to utilise the proceeds of the proposed transaction entirely to reduce its debt, “and further strengthen its financial position to tap mega growth opportunities in defence and EPC (engineering, procurement and construction) for the infrastructure sector”.
On Monday, RInfra executed a business transfer agreement for its “Western Region System Strengthening Scheme” (WRSSS) transmission undertakings. According to the company, “WRSSS B and C” undertakings are being transferred to its two subsidiaries as part of the process to sell the businesses to Adani Transmission Limited (ATL).
Earlier, in December 2016, RInfra had entered into share purchase agreement with ATL for sale of WRSSS valuing the businesses at Rs 1,000 crore. RInfra owns the country’s first 100 per cent private sector transmission project — WRSSS B and C — projects located in the states of Maharashtra, Gujarat, Madhya Pradesh and Karnataka.