Adani Power extends deadline for completion of DB Power acquisition for second time by month | Adani Power
Adani Power on Monday said the timeline for closing the Rs 7,017 crore deal to acquire thermal assets of DB Power Ltd has been extended by one month to December 31, 2022.
The company had earlier extended the completion date by a 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,” BSE said in a statement.
Adani Power agreed to acquire DB Power in August
Earlier in August this year, Adani Power informed the stock exchanges that it had agreed to acquire DB Power Ltd (DB Power), which owns and operates an operational 2×600 MW thermal power plant in Janjgir Champa district of Chhattisgarh.
DB Power has long- and medium-term power purchase agreements for 923.5 MW of its capacity, supported by fuel supply agreements with Coal India Ltd, and operates its facilities profitably.
The initial term of the MoU (memorandum of understanding) is till October 31, 2022, which may be extended by mutual agreement, it said.
The enterprise value of DB Power was estimated at Rs 7,017 crore, subject to adjustments on the closing date, it said.
DB Power is engaged in the business of setting up, operating and maintaining thermal power plant in Chhattisgarh. It was incorporated on 12 October 2006 in the Registrar of Companies, Gwalior.
DB Power’s turnover in the last three financial years was recorded at Rs 3,488 crore (for FY 2021-22); 2930 crore rupees (for FY 2020-21) and 3126 crore rupees (for FY 2019-20), respectively.
DPPL (Diliigent Power Pvt Ltd) is the holding company of DB Power.
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