RInfra gets nod to sell Mumbai power biz to Adani

Fair trade regulator Competition Commission of India (CCI) has approved the sale of Reliance Infrastructure's (RInfra) Mumbai power business to Adani Transmission, RInfra said on Monday.

RInfra said it had signed the binding agreement for the sale of its integrated Mumbai power business in December 2017. The transaction was expected to be completed by March, the firm said.

The CCI "has approved sale of RInfra's Mumbai power business to Adani Transmission (ATL)," it said. RInfra said in December that it has signed a definitive pact for 100 per cent sale of its Mumbai power business to ATL for a total consideration of Rs 18,800 crore. While the total deal value of the sale of the Mumbai power utility, Reliance Energy, is Rs 13,251 crore, regulatory assets estimated at Rs 5,000 crore and net working capital on closing estimated at Rs 550 crore would also accrue to RInfra as part of the agreement.

Total deal value is at Rs 13,251 crore, which comprises of business valued at Rs 12,101 crore and regulatory assets approved so far of Rs 1,150 crore.

In addition, 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, it said. RInfra will utilise the proceeds entirely to reduce its debt.