 "RInfra to sell transmission business to Adani Transmission")
Anil Ambani promoted Reliance Infrastructure Ltd on Wednesday said it has signed a binding agreement with Adani Transmission Ltd to sell its 100% in its power transmission business for an undisclosed amount.
"Reliance Infrastructure Limited (RInfra) today announced the signing of a binding Term Sheet with Adani Transmission Limited (ATL) for 100% stake sale of its transmission assets," the company said in a press statement on Wednesday.
Assets part of its transmission business, according to the company's website, have an asset base of Rs 7,000 crore and comprise of approximately 6280 circuit kilometers of transmission lines with a presence across seven states.
"RInfra owns the country's first 100% private sector transmission project - Western Region System Strengthening Scheme (WRSSS) - B & C projects located in the state of Maharashtra, Gujarat, Madhya Pradesh and Karnataka.
RInfra owns 74% in Parbati Koldam Transmission Company Limited (PKTCL) located in the state of Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India Limited (PGCIL). All three transmission projects are completed and revenue generating." the company said in its statement.
RInfra has been on an asset monetization drive to reduce itsdebt burden. Proceeds from this sale, the company said, will be fully utilized to reduce debt.
"The transaction is in line with the strategic plan of monetizing non-core business and focus on major growth areas like Defence and EPC business," the company said in its statement.
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In February this year, RInfra signed a Rs 4,800 crore deal with Birla Corp Ltd to sell its cement division. The company in November 2015 also entered into a non-binding agreement with Canadian pension fund Public Sector Pension Investment Board (PSP Investments) to sell 49% stake in its Mumbai power business.
"Monetization of Cement business has been completed and monetisation of Roads & Mumbai Power businesses are in advanced stage,"RInfra said in its statement.
As on June 2016, the company has a totalstandalone debt of Rs 14,000 crore, the consolidated number which was not readily available would be higher. SBI Capital Markets Limited is acting as the financial advisors to RInfra for this transaction.