 "Adani Power gets approval to acquire Lanco Amarkantak Power for Rs 4,101 cr")
Adani Power on Thursday said the NCLT Hyderabad bench has approved its plan to acquire Lanco Amarkantak Power Ltd (LAPL) for an upfront payment of Rs 4,101 crore.
LAPL is undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, a BSE filing said.
According to the filing, the acquisition shall be subject to the satisfaction of conditions precedent mentioned under the resolution plan.
Adani Power will acquire 100 per cent shareholding in the LAPL for a cash consideration, the filing said.
LAPL owns and operates a 2x300 MW (600 MW) thermal power plant (Phase-I) at Pathadi Village in Korba District of Chhattisgarh.
The majority of the power generated from the Phase-I capacity is supplied to Haryana and Madhya Pradesh Discoms under long-term power purchase arrangements through Power Trading Corporation Ltd.
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It has 2.784 MMT of long-term fuel supply agreement with Coal India Limited's subsidiary South Eastern Coalfields Ltd (SECL).
LAPL is also setting up a 2x660 MW (1320 MW) expansion capacity under Phase II.
The acquisition is to be completed within 60 days from the date of the National Company Law Tribunal's approval order by October 20, 2024.
The object of the LAPL, being the generation of power, is on the same line as the main line of the company's business.
Successful acquisition and implementation of the resolution plan for the acquisition of LAPL will advance APL's position as India's leading private sector power producer, with a combined operational power generation capacity of 15,850 MW, it stated.