Adani Power has announced the initiation of a preliminary agreement to sell the complete equity holdings of its two subsidiaries, Aviceda Infra Park and Innovant Buildwell, to AdaniConnex for a sum of Rs 540 crore.
Adani Power is one of the prominent players in India’s energy sector, focusing on power generation and transmission. Established as part of the Adani Group, the company operates several power plants across India, contributing to the nation’s energy needs through a mix of thermal and renewable energy sources.
AdaniConnex is a subsidiary of the Adani Group, offering integrated utility solutions. Tt operates in areas such as power distribution, city gas distribution, and water infrastructure, playing a crucial role in the development of smart and sustainable urban ecosystems.
Adani Power formalized a Memorandum of Understanding (MOU) outlining the agreement for the divestment of its complete equity ownership in two wholly owned subsidiaries, namely Aviceda Infra Park Ltd (AIPL) and Innovant Buildwell Private Ltd (IBPL). The move involves the sale of these subsidiaries to AdaniConnex Private Ltd (ACX), as disclosed in a filing with the Bombay Stock Exchange (BSE).
As a result, the completion of the sale will lead to the AIPL and IBPL no longer being subsidiaries fully owned by the company. The disclosed documentation indicates that the sale of AIPL amounts to Rs 190 crore, while IBPL is being sold for a consideration of Rs 350 crore.
AdaniConnex Private Ltd (ACX) represents a collaborative endeavor with an equitable 50:50 partnership shared between Adani Enterprises, a company within the promoter group, and EdgeConneX.
The focal point of its operations revolves around the cultivation of cutting-edge data centers, coupled with the provisioning of co-location hosting and supplementary services. These encompass an array of offerings, including managed services, remote hands and feet assistance, along with various interconnected services.
The transactions under consideration pertain to related party transactions and have been executed on the basis of arm’s length principles, as expressly indicated. The anticipated culmination date for these transactions is slated for March 31, 2024.
