POWER

IndiGrid to buy 100% stake in NER II from Sterlite Power for Rs 4,625 crore

Investment trust IndiGrid on Friday inked an agreement to acquire 100 per cent equity stake in NER II Transmission from Sterlite Power for about Rs 4,625 crore. The completion of acquisition would depend upon receipt of unitholders’ consent, regulatory and other relevant approvals, it said.

“India Grid Trust (IndiGrid) signed share purchase agreement on March 5, 2021 for acquisition of 100 per cent shareholding and economic interest, in one or more tranches, in NER II Transmission Ltd from Sterlite Grid 4 Ltd,” a company statement said.

Sterlite Grid is a wholly-owned subsidiary of Sterlite Power Transmission Ltd, one of the sponsors of IndiGrid.

According to the statement, the 100 per cent equity stake will be acquired at an enterprise value not exceeding Rs 4,625 crore subject to all other adjustments.

The indicative value of the acquisition is Rs 4,625 crore and would boost IndiGrid’s asset under management (AUM) by 34 per cent to over Rs 20,000 crore (USD 2.8 billion).

Post completion, the platform’s asset portfolio would consist of 13 power transmission projects, with a total network of 38 power transmission lines and 11 substations extending over 7,570 circuit kilometers & 13,350 MVA in 17 Indian states and 1 Union Territory.

NER-II is part of Inter-State Transmission Scheme network, and was awarded on a Build, Own, Operate, Maintain basis with a contractual period of 35 years.

Source
ET Energy World
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