Adani Power calls off ₹7,000-crore deal to acquire DB Power assets
Adani Power has called off its plans to acquire thermal power assets of DB Power Limited (DBPL) from the Dainik Bhaskar Group for around ₹7,017-crore enterprise valuation
Adani Power had signed a deal on August 18, 2022 for the transaction. At that time, the company had said that it will be completing the deal by October 31, 2022. However, the deadline was later extended multiple times, with the last extension of the deadline to February 15, 2023.
In a disclosure to the stock exchanges, Adani Power said, “we wish to inform that the long stop date under the memorandum of understanding dated August 18, 2022, has expired. “
While the company did not disclose the reasons for calling off the deal, it comes close on the heels of the recent allegations made by short seller firm Hindenburg Research against the Adani group.
DB Power Limited, part of Diliigent Power Private Limited (DPPL), owns and operates a 2X600 MW thermal power plant in the Janjgir Champa district in Chattisgarh.
APL wanted to acquire 100 per cent of the total issued, subscribed and paid-up equity share capital and preference share capital of DPPL.
The Gautam Adani-led APL had said that the acquisition will help it to expand offerings and operations in the thermal power sector in Chhattisgarh.
DB Power has long and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Limited, and has been operating its facilities profitably, a regulatory filing said.
Set up in October, 2006, DB Power is engaged in the business of establishing, operating and maintaining a thermal power generating station in Chhattisgarh.