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Adani Power To Acquire DB Power For Rs 7,017 Crore Enterprise Value
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Adani Power on Friday (19 August) announced that it is buying DB Power Limited, which owns and operates a running 2x600 MW thermal power plant at District Janjgir Champa in Chhattisgarh, for an enterprise value of Rs 7,017 crore.
DB Power owns and operates a 2x600 MW thermal power plant in Chhattisgarh, which had a turnover of Rs 3,488 crore for FY 2021-22. The acquisition of DB Power will help Adani Power expand its offerings and operations in the thermal power sector in the state of Chhattisgarh, the company said in a regulatory filing.
DB Power has long and medium-term Power Purchase Agreements for 923.5 MW of its capacity, backed by Fuel Supply Agreements with Coal India Limited, and has been operating its facilities profitably, the company said.
Diliigent Power Private Limited is the holding company of DB Power.
Under the proposed acquisition plan, Adani Power will acquire "100 per cent of the total issued, subscribed and paid- up equity share capital and preference share capital of DPPL".
"The initial term of the MoU shall be till completion of the acquisition on October 31, 2022, which may be extended by mutual agreement," the company said.
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