Power utility major CESC's wholly-owned subsidiary - Eminent Electricity Distribution - will take over the distribution company responsible for supply of electricity in the Union Territory of Chandigarh.
CESC informed of a 'Letter of Intent' for acquiring 100% shares in the distribution company having license for Chandigarh region. The transaction has been signed for Rs 871 crore, subject to the terms and conditions in the LOI.
“We write to inform you that Eminent Electricity Distribution Ltd, a wholly-owned subsidiary of CESC Ltd, has received a Letter of Intent for acquiring 100 per cent shares in a distribution company responsible for electricity distribution and retail supply in the Union Territory of Chandigarh,” the company said.
The deal had been initiated in 2021, and faced legal challenges by trade unions opposing privatization, which delayed the closure. A recent Punjab and Haryana High Court order dismissed the unions' objections, paving the way for the contract. CESC, a RP-Sanjiv Goenka Group company, had emerged as the highest bidder for the Rs 871 crore deal, securing the tender for Chandigarh distribution business in 2021, before the bid was challenged by trade unions.
The transaction is expected to be finalized within 30 days.
CESC outbid Torrent Power, NTPC, and ReNew Power and other players like Adani, Tata Power and Sterlite to bag the deal.
CESC is distributing power in Noida, Kota, Bikaner and Bharatpur, along with Malegaon in Maharashtra, apart from Kolkata.
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