Contact Your Financial Adviser Money Making MC
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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