Adani Power (NSE: ADANIPOWER) announced on Saturday that the deadline for completing its acquisition of thermal power assets from DB Power has been extended until January 15, 2023. The previous deadline for the completion of the deal, which is worth INR 7,017 crore (about $963 million), was December 31, 2022. The extension was mutually agreed upon by the parties involved in the transaction, according to a filing with the Bombay Stock Exchange.
Adani Power initially announced its intention to acquire DB Power, which owns and operates a 2×600 MW thermal power plant in Chhattisgarh, India, in August of this year. DB Power has long- and medium-term power purchase agreements for 923.5 MW of its capacity, which are backed by fuel supply agreements with Coal India, and it has been operating its facilities profitably. The enterprise value of DB Power was estimated at INR 7,017 crore (about $963 million), subject to adjustments on the closing date.
DB Power was incorporated on October 12, 2006, and is engaged in the business of establishing, operating, and maintaining a thermal power generating station in Chhattisgarh. It is a holding company of Diliigent Power Private Limited (DPPL).
DB Power Finances:
Over the past three fiscal years, DB Power’s turnover has been INR 3,488 crore (about $482 million) for fiscal year 2021-2022, INR 2,930 crore (about $401 million) for fiscal year 2020-2021, and INR 3,126 crore (about $429 million) for fiscal year 2019-2020.
The initial term of the memorandum of understanding between Adani Power and DB Power was set to expire on October 31, 2022, but it can be extended by mutual agreement. The extension of the deadline for completion of the deal until January 15, 2023, allows both parties additional time to finalize the transaction.
