Wednesday, 5 October 2016

Reliance Infrastructure to sell transmission business-The Total Investment & Insurance Solutions

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5 October 2016

Anil Ambani-led Reliance Infrastructure on Wednesday said it is selling its entire transmission assets to Adani Transmission. The deal size was not divulged, but banking sources estimated it at over Rs 2,000 crore. The Total Investment & Insurance Solutions

Reliance Infrastructure owns the country's first 100 per cent private sector transmission project -- the Western Region System Strengthening Scheme -- in Maharashtra, Gujarat, Madhya Pradesh and Karnataka. The Total Investment & Insurance Solutions

Reliance Infrastructure also owns 74 per cent in Parbati Koldam Transmission located in Himachal Pradesh and Punjab in a joint venture with Power Grid Corp. All three transmission projects have been completed and are revenue-generating, the company said in a statement.

"The entire sale proceeds from the transaction will be utilized for debt reduction," the company said, adding that SBI Capital Markets is their financial advisor for the transaction.

"The transaction is in line with the strategic plan of monetizing non-core business and focus on growth areas like defence and engineering, procurement and construction business." The cement business has been monetised and that of roads and Mumbai power are in advanced stages.

Reliance Infrastructure is one of India's largest companies in the sector, developing projects through various special purpose vehicles in several high growth sectors such as power, roads and metro rail in the infrastructure space and the defence sector.

It is also a leading utility company having a presence across the value chain of power businesses

-- generation, transmission, distribution and power trading. Its portfolio includes a metro rail project in Mumbai, and 11 road projects of 1,000 kms. The Total Investment & Insurance Solutions

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