GMR Energy Limited (GEL), a subsidiary of GMR Infrastructure Limited (GIL), has entered into definitive agreements with Adani Transmission Limited (ATL) wherein GEL has agreed to transfer the interest in its transmission projects – Maru Transmission Services Limited (MTSL) and Aravali Transmission Services Limited (ATSL) to ATL.
Currently, 74% stake in MTSL and 49% stake in ATSL shall be transferred to ATL with an option to acquire the balance stakes in both the projects. The consummation of transaction is subject to applicable approvals.
The equity consideration ascribed for the transaction involving both the projects is Rs 100 crore. The total value realizable for GEL could be Rs 220 Cr considering this equity consideration and the expected upside of upto Rs 120 crore from regulatory proceeds of various appeals of the assets before the APTEL.
Post consummation of the transaction, the consolidated debt of GMR Group would be reduced. The total debt in the projects as on March 31, 2016 is Rs 324 crore. GMR Group is a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation and Urban Infrastructure. The group has fifteen power generation projects, nine operating road assets and a double rail track line of eastern dedicated freight corridor under development.
GMR Energy Limited was awarded two transmission projects on BOOM basis in 2010. MTSL operates 270 Km of 400 KV / 220 KV transmission lines in Rajasthan. The Project had achieved COD in 2013.
The transmission assets (MTSL and ATSL) form a part of the excluded group of assets from the Tenaga transaction. “GMR Group continues on its path of Asset Light Asset right strategy. The deal will release further liquidity and deleverage the GMR balance sheet. The asset sale done at challenging market environment further signifies GMR’s ability to create value for its stake holders,” GBS Raju, Business Chairman – Energy, GMR Group said.
GMR Group developed and operates India’s busiest Indira Gandhi International Airport in New Delhi and greenfield Rajiv Gandhi International Airport at Hyderabad.