Saturday Dec 28, 2024
Saturday Dec 28, 2024
Saturday, 18 May 2024 00:04 - - {{hitsCtrl.values.hits}}
Adani Energy Solutions Ltd. (AESL), one of the largest private transmission and distribution companies in South Asia with a growing smart metering portfolio, has acquired 100% stake in Essar Transco Ltd. after obtaining requisite regulatory and other approvals. The share acquisition is pursuant to definitive agreements signed in June, 2022.
The acquisition covers fully operational 400 kV, 673 ckt km inter-state transmission lines. The project operates under the Central Electricity Regulatory Commission (CERC) regulated return framework and was commissioned on 22 September 2018.
In accordance with AESL’s capital management philosophy, ATSTL also raised financing at the most competitive terms. This establishes a new benchmark for AESL to raise capital and unlocks the lower-cost debt for its operational assets. The financing exemplifies the quality of AESL’s utility cashflows with a long-term license life, well supported through a stable regulatory framework. MUFG Bank Ltd. is the sole lender for the financing.
“The acquisition is consistent with the AESL’s philosophy of augmenting its existing capacities and bringing in efficiency through operational synergies and creating network effect. Along with a robust energy demand, the ability to recognise and tap market opportunities within the areas of interest continues to propel and position AESL at the forefront of energy transition in South Asia, including Sri Lanka,” the Company said in a statement.
