adithya
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MUMBAI: India’s leading renewables company Greenko is in talks with Anil Ambani-led Reliance Infrastructure to acquire its Mumbai electricity business for an enterprise value of Rs 10,000-13,000 crore ($1.75-2 billion), people aware of the discussions said.
The Mumbai business caters to 3 million customers, making it the country’s largest private sector integrated power utility, entailing 1800 mw of distribution along with generation facilities, besides over 1,000 km of underground network. The distribution franchise is nine decades old with the licence valid till August 2036.
In November 2015, R-Infra entered into a non-binding pact to sell 49% stake in the business to Public Sector Pension Investment Board (PSP Investments) of Canada. Those exclusive negotiations lapsed, following which the company engaged with other potential suitors, said sources in the know.
Hong Kong-headquartered CLP has also held discussions with Reliance, said a company official on condition of anonymity, but Greenko is believed to be the front-runner. However, no binding agreements have been signed yet, said the sources mentioned above.
Spokespersons for R-Infra and Greenko refused comment on what they termed as speculation. “India is a primary growth market for CLP Group and the company has built its portfolio steadily for the last 15 years. In line with its growth strategy, the company routinely evaluates different opportunities. The matter in question is speculative and as a policy, we don’t respond to market speculation,” a CLP spokesperson told ET.
In FY17, R-Infra’s electrical division (Mumbai and Delhi together) clocked Rs 4,165 crore EBITDA (earnings before interest, tax, depreciation and amortisation) on the back of Rs 22,556 crore revenues. The Mumbai division accounted for around Rs 9,750 crore revenues and Rs 2,000-2,500 crore EBITDA, sources said. The company does not disclose city-wise breakup.
The Mumbai circle licence, along with the generation, transmission and distribution assets, will be carved out and transferred to a subsidiary and then sold, explained the official mentioned above.
Anil Ambani: Greenko eyes Reliance Infrastructure's Mumbai power business for $2 billion - The Economic Times
The Mumbai business caters to 3 million customers, making it the country’s largest private sector integrated power utility, entailing 1800 mw of distribution along with generation facilities, besides over 1,000 km of underground network. The distribution franchise is nine decades old with the licence valid till August 2036.
In November 2015, R-Infra entered into a non-binding pact to sell 49% stake in the business to Public Sector Pension Investment Board (PSP Investments) of Canada. Those exclusive negotiations lapsed, following which the company engaged with other potential suitors, said sources in the know.
Hong Kong-headquartered CLP has also held discussions with Reliance, said a company official on condition of anonymity, but Greenko is believed to be the front-runner. However, no binding agreements have been signed yet, said the sources mentioned above.
Spokespersons for R-Infra and Greenko refused comment on what they termed as speculation. “India is a primary growth market for CLP Group and the company has built its portfolio steadily for the last 15 years. In line with its growth strategy, the company routinely evaluates different opportunities. The matter in question is speculative and as a policy, we don’t respond to market speculation,” a CLP spokesperson told ET.
In FY17, R-Infra’s electrical division (Mumbai and Delhi together) clocked Rs 4,165 crore EBITDA (earnings before interest, tax, depreciation and amortisation) on the back of Rs 22,556 crore revenues. The Mumbai division accounted for around Rs 9,750 crore revenues and Rs 2,000-2,500 crore EBITDA, sources said. The company does not disclose city-wise breakup.
The Mumbai circle licence, along with the generation, transmission and distribution assets, will be carved out and transferred to a subsidiary and then sold, explained the official mentioned above.
Anil Ambani: Greenko eyes Reliance Infrastructure's Mumbai power business for $2 billion - The Economic Times