Adani Power extends DB Power acquisition timeline to December end | News Bharat

The deadline for completion of 7,017 crore deal to buy the thermal assets of DB Power Ltd. has been extended by one month to December 31, 2022, according to a statement by Adani Power on Monday. The company previously pushed back the completion deadline by one month to November 30, 2022.

“The parties to the proposed transaction have mutually agreed to further extend the long cut-off date as December 31, 2022 to achieve closing/completion,” it said in a BSE filing.

An operational 2×600 MW thermal power plant owned and operated by DB Power Ltd (DB Power) in Chhattisgarh’s Janjgir Champa district will be acquired by Adani Power, the company informed stock exchanges earlier in August this year.

DB Power operates its facilities profitably and has long- and medium-term power purchase agreements in place for 923.5 MW of its capacity. These agreements are supported by fuel supply agreements with Coal India Ltd.

The initial term of the memorandum of understanding is until October 31, 2022, but may be extended if both parties agree, according to the original language. It was stated that the enterprise value of DB Power is expected to be 7,017 crores, subject to change as on the closing date.

Construction, operation and maintenance of thermal power generation facility in Chhattisgarh is the business of DB Power. Registrar of Companies, Gwalior, where it was incorporated on 12 October 2006.

The revenue generated by DB Power in the previous three fiscal years was 3488 crores (for FY 2021–22), 2,930 crores (for FY 2020–21), and 3126 crores (for FY 2019–20), respectively.

DPPL (Diliigent Power Pvt Ltd) is the holding company of DB Power.

(With information from PTI)

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