Shares of Adani Energy Solutions, formerly known as Adani Transmission Ltd, are in focus on Thursday morning after the Adani group firm informed stock exchanges about the closing of acquisition of 100 per cent equity shares of Essar Transco Limited (ETL). The acquisition got concluded on May 15 at about 11.00 pm IST, Adani Energy Solutions said.
The acquisition has been undertaken by Adani Transmission Step Two Limited, a wholly owned subsidiary of the company. With its conclusion, ETL has become wholly owned subsidiary of ATSTL and the step-down wholly owned subsidiary of the company, Adani Energy Solutions said.
The Adani group firm said the acquisition is in line with the company’s value added growth strategy through organic as well as inorganic growth opportunities. "With this acquisition, the cumulative network of the company will reach 21,182 ckt kms, out of which 18,109 ckt kms is operational and 3,073 ckt kms is under various stages of execution," Adani Energy Solutions said.
With this scale of operations, Adani Energy Solutions will derive synergies in terms of O&M cost optimisation and shared resources. "It will also fortify its position of being the largest private sector transmission and distribution company in the country," Adani Energy Solutions said.
Post the execution of the Original SPA, a Scheme of Arrangement for the demerger of the Stage II Transmission Undertaking to Essar Transco (with effect from the appointed date i.e., April 1, 2023) was filed with the NCLT. The scheme was sanctioned by the NCLT vide order dated February 15, 2024.
Now, the parties to the Original SPA are proposing to amend and restate the Original SPA for acquiring 100 per cent of the stake of Essar Transco Limited (“ETL”) from Essar Power Limited and Essar Power Transmission Company Limited.