Mumbai, March 1 (IANS) Reliance Infrastructure (RInfra) on Thursday said its shareholders have approved the proposed 100 per cent sale of its integrated Mumbai Power Business to Adani Transmission Ltd (ATL).
“The resolution has been passed with 94 per cent votes in favour of the proposal,” the company said in a statement.
“The Competition Commission of India (CCI) has already approved the transaction. RInfra and ATL had signed definitive binding agreement for 100 per cent stake sale of the integrated business of generation, transmission and distribution of power for Mumbai in December 2017.”
According to the company, the total consideration value of the transaction is estimated at Rs 18,800 crore.
“Transaction is expected to be completed by March 2018, subject to approvals. Reliance Infrastructure Limited will utilize the proceeds of this transformative transaction entirely to reduce its debt,” the statement said.
“This is the largest-ever debt reducing exercise by any corporate. This monetization is a major step in Reliance Infrastructure Limited’s deleveraging strategy for future growth.
Reliance Infrastructure’s Mumbai Power business (known as Reliance Energy) is India’s largest private sector integrated power utility distributing power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq km.
It caters to a peak demand of over 1,800 MW, with annual revenues of Rs 7,500 crore with stable cash flows.