Qatar Investment Authority (QIA) is investing about $450 million for a 25.1% stake in a unit of Adani Transmission Ltd, the Indian company said in a filing Wednesday.
The deal includes a subordinated debt investment by QIA, according to the filing, which said the two sides have signed a definitive agreement. The transaction is expected to be completed in early 2020 after obtaining regulatory approvals, it said.
The unit, Adani Electricity Mumbai Ltd., offers power distribution, transmission and generation for more than 3 million customers across Mumbai and handles about 55% of the city’s electricity supply. Under the deal, more than 30% of the subsidiary’s supplied electricity will be sourced from solar and wind power generation by 2023, according to the filing.
“With this deal, Adani Transmission has shown the will to systematically deleverage its balance sheet,” said Deven Choksey, managing director at Mumbai-based K R Choksey Shares & Securities Pvt. “This will give them room to acquire more such assets in future.”
SKN Advisors acted as financial adviser to Adani on the deal, while Cyril Amarchand Mangaldas was its legal adviser, according to the filing. JPMorgan Chase & Co., Cleary Gottlieb Steen & Hamilton LLP and AZB & Partners advised QIA.
Adani signed a binding agreement in 2017 to buy the Mumbai power business from Reliance Infrastructure Ltd. for 132.5 billion rupees.
Source from: The Peninsula