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 the National Company Law Tribunal, Allahabad.
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 Pte. (TPIPL) (a wholly owned subsidiary of Tata Power) owns 26% stake in Resurgent Power. ICICI Bank (ICICI Bank) owns 10% stake in Resurgent Power and the balance 64% is held by other global investors.
Resurgent Power Ventures has completed the acquisition of SEUPPTCL and has settled the debt of all existing creditors as per the terms of the Resolution Plan. The transaction was part of a stressed asset resolution process run by Resolution Professional under the supervision of its Committee of Creditors through a competitive bidding process under the Insolvency and Bankruptcy Code, 2016, the company stated in the press release.
The company said that the total payout for one time settlement as per approved resolution plan was Rs 3,251 crore and additional payout of existing cash balance of the company 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, it added
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, the company said.
The firm stated that the acquisition is in line with Resurgent's objective of investing in stressed power companies in India.
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-OwnOperate-Maintain & Transfer (BOOT) basis. Pursuant to implementation of the resolution plan, SEUPPTCL has become a wholly owned subsidiary of Resurgent Power.
SEUPPTCL has approx. 1,500 km of Transmission Line (765 kV and 400 kV) and 5 substations (765 kV and 400 kV).
Speaking on the development, Praveer Sinha, CEO & MD, Tata Power said In line with our aspiration to expand our transmission business, Tata Power has partnered with ICICI and other global investors in Resurgent Power, that had bid for acquiring SEUPPTCL under Corporate Insolvency Resolution Process. We are delighted to have completed the acquisition, allowing all creditors to maximize the recovery from this project. This asset fits our overall strategy to maximize shareholder value through growth & sound investments. After successful turnaround of Prayagraj Power and acquisition of NRSS XXXVI, this asset will add further value to and diversify the Resurgent Power portfolio.
Tata Power is one of India's largest integrated power companies and together with its subsidiaries and jointly controlled entities, has an installed/managed capacity of 13,749 MW. The company has a presence across the entire power value chain - generation via renewables as well as conventional power including hydro and thermal energy; transmission & distribution, coal & freight, logistics, and trading.
The company's net profit jumped 90% to Rs 884 crore on 43% increase in net sales to Rs 14,495.48 crore in Q1 FY23 over Q1 FY22.
Shares of Tata Power Company were down 0.61% to Rs 235.25 on the BSE.
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