India’s Adani Power has agreed to acquire DB Power at enterprise value of INR 70.2bn ($879mn). DP Power owns and operates a running 2×600 MW thermal power plant at Chhattisgarh state. The transaction will be paid for by a cash consideration. DB Power has long and medium-term Power Purchase Agreements (PPAs) for 923.5 MW of its capacity, backed by fuel supply agreements with state owned Coal India Ltd, and operating profitably. The company had a turnover of INR 34.9bn ($440mn) for the previous fiscal year, and is engaged in the building, operating, and maintaining thermal power generating stations. Diliigent Power Private Ltd (DPPL) is the holding company of DB Power, and thus 100% of the total issued, subscribed and paid-up equity share capital and preference share capital of DPPL will be acquired. Adani Power has installed capacity of 12.5GW spread across major states of India and the acquisition is set to further boost its capacity.
Adani ’s 3.375% 2024s traded higher 0.12 points to 97.42 to yield 4.8%.
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