The board of diversified corporate Adani Enterprises Ltd. (AEL) Friday decided to demerge its ports, power and transmission businesses and list this to simplify the structure and to unlock shareholder value.
The board also decided to merge wholly-owned subsidiary Adani Mining Private Ltd. with the parent-AEL.
In a statement, the company said under a composite scheme of arrangement with its subsidiaries, AEL's ports business would be housed in Adani Ports and Special Economic Zone Ltd. (APSEZ) and the power operations in Adani Power Ltd. (APL).
The appointed date for the corporate rejig has been fixed April 1, 2015.
"The Scheme of Arrangement will simplify corporate structure providing the shareholders of AEL direct shareholding in the respective operating companies, listing of one of the largest private sector transmission companies with over 5,000 circuit km of transmission lines across Western, Northern and Central regions of India and increase free float at APL and APSEZ," the statement said.
Transaction is expected to unlock value for the shareholders of AEL by eliminating holding company discount.
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Pursuant to the demerger of the port business of AEL into APSEZ, the latter would issue and allot new equity shares to the equity shareholders of AEL in the ratio of 14,123 equity shares in APSEZ for every 10,000 equity shares held by the equity shareholder in AEL as of the record date for the purpose of the scheme.
Similarly the power company APL, would issue and allot equity shares to shareholders of AEL in the ratio of 18,596 equity shares for every 10,000 equity shares held by the equity shareholder in AEL.
The transmission company ATL would issue equity shares to AEL shareholders in the ratio of 1:1.
According to the statement, ATL is currently in the process of acquiring 100 percent of the outstanding equity share capital of Adani Transmission (India) Limited from APL and Adani Power Maharashtra Limited- a wholly owned subsidiary of APL.
ATL is also in the process of acquiring the entire outstanding equity share capital of Maharashtra Eastern Grid Power Transmission Company Ltd (MEGPTCL) from AEL.
The AEL board also decided to list the transmission company ATL on the BSE Limited and the National Stock Exchange of India Limited.