Resurgent Power acquires SEUPPTCL under CIRP process

Resurgent Power Ventures has completed the acquisition of South East U.P. Power Transmission Company (SEUPPTCL) pursuant to implementation of the Resolution Plan of SEUPPTCL approved by Hon'ble National Company Law Tribunal, Allahabad.

SEUPPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company (UPPTCL) on 11 September 2009 to implement and operate the specified intra-state transmission system for a period of 35 years under public private partnership model on Build-Own-Operate-Maintain & Transfer (BOOT) basis. SEUPPTCL has approx. 1,500 Km of Transmission Line (765 kV and 400 kV) and 5 substations (765 kV and 400 kV). Pursuant to implementation of the Resolution Plan, SEUPPTCL has become a wholly owned subsidiary of Resurgent Power.

 

Resurgent Power is a Joint Venture based out of Singapore co-sponsored by Tata Power and ICICI Venture and has other global reputed institutions as investors. It was set up to acquire stressed assets in the Indian Power Sector. Tata Power International (TPIPL) (a wholly owned subsidiary of Tata Power) owns 26% stake in Resurgent Power. ICICI Bank Ltd (ICICI Bank) owns 10% stake in Resurgent Power and the balance 64% is held by other global investors.

SEUPPTCL has approx. 1,500 Km of Transmission Line (765 kV and 400 kV) and 5 substations (765 kV and 400 kV). Total scope of the project was divided into two groups:

a. Group 1: consisting of transmission lines of length about 600 Kms (765 kV and 400 kV), and 2 substations (765 kV and 400 kV). This group is already operational since July 2017.

b. Group 2: consisting of transmission lines of length of about 900 Kms (765 kV & 400 kV), and 3 substations (400 kV). This group is under construction.

The transaction entailed payment for one-time settlement of outstanding debt and purchase of equity shares for a total consideration of Rs 3,251 crore and payout of existing cash balance of SEUPPTCL as outlined in the Resolution Plan. In addition, Resurgent Power will invest equity and raise debt in SEUPPTCL for completion of Group 2. When completed, the total enterprise value will be approx. Rs 6,500 crore. The transaction has been funded through a mix of shareholder funds brought in by Resurgent Power and loans drawn down from State Bank of India.

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