Mumbai: Reliance Infrastructure Ltd on Tuesday said it has moved an application before Maharashtra Electricity Regulatory Commission (MERC) seeking approval to assign its transmission and distribution licences and transfer the integrated Mumbai power business to Adani Transmission Ltd.
The clearance has been sought by RInfra to assign its license and transfer the business to the wholly owned subsidiary, Reliance Electric Generation and Supply Ltd, which will then be acquired by ATL, said a spokesperson.
In a letter to the BSE, RInfra said that it had signed definitive binding agreement for 100 percent sale of its Mumbai power business with ATL, for a total deal value of Rs 13,251 crore.
In addition to these, the regulatory assets under approval estimated at Rs 5,000 crore and net working capital on closing estimated at Rs 550 crore will flow directly to RInfra.
Total consideration value of the deal with the Gujarat-headquartered ATL was estimated at Rs 18,800 crore, which will include RInfra's integrated assets in power generation, transmission and distribution in Mumbai.
With this transaction, the Anil Ambani-led RInfra would not only become debt-free but end up with a cash surplus of Rs 3,000 crore, said the spokesperson.