GMR Energy today announced stake sale in two of its transmission projects to Adani Transmission for equity consideration of Rs 100 crore.
"GMR Energy (GEL), a subsidiary of GMR Infrastructure (GIL), has entered into definitive agreements with Adani Transmission (ATL) wherein GEL has agreed to transfer the interest in its transmission projects - Maru Transmission Services (MTSL) and Aravali Transmission Services (ATSL) - to ATL," GMR said in a BSE filing.
"Currently, 74 percent stake in MTSL and 49 percent stake in ATSL shall be transferred to ATL with an option to acquire the balance stakes in both the projects." GMR said equity consideration for the transaction involving both the projects is Rs 100 crore.
"The total value realisable for GEL could be Rs 220 crore considering this equity consideration and the expected upside of up to Rs 120 crore from regulatory proceeds of various appeals of the assets before APTEL," it added.
The company added that post completion of the transaction, consolidated debt of the GMR Group would come down. The total debt in the projects as on March 31, 2016, is Rs 324 crore.
GMR Energy was awarded two transmission projects on build, own, operate and maintain (BOOM) basis in 2010. While MTSL operates 270 km of 400 kv / 220 kv transmission lines in Rajasthan, ATSL runs 96 km of 400 kv transmission line in Rajasthan.
GBS Raju, Business Chairman - Energy, GMR Group, said: "GMR Group continues on the path of Asset Light Asset Right strategy. The deal will release further liquidity and deleverage the GMR balancesheet." In a separate filing, Adani Transmission said it has an option to acquire 100 percent in a manner consistent with Transmission Service Agreement and applicable consent.
The equity value for 100 percent stake of both the projects is ascribed at Rs 100 crore.
Adani Group Chairman Gautam Adani said: "Adani Transmission is foreseeing significant growth in the transmission sector and expects to maintain its leadership position in the country. This acquisition is in sync with the long-term strategy of ATL wherein, we are always looking to create value for our stakeholders." The consummation of transaction is subject to applicable approvals.
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