IndiGrid signs agreement to acquire NER-II Transmission
India, Mumbai: India Grid Trust (IndiGrid), on 5 March, signed a share purchase agreement with Sterlite Power.
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India, Mumbai: India Grid Trust (IndiGrid), on 5 March, signed a share purchase agreement with Sterlite Power.
The scope of agreement is to acquire NER-II Transmission Ltd (NER-II) from Sterlite Power as part of the Framework Agreement.
The indicative value of the acquisition is $631 M (Rs.4,625 crore) and the acquisition would boost IndiGrid’s assets under management (AUM) by 34 % to over $2.8 B (Rs.20,000 crore).
Post completion, IndiGrid’s asset portfolio would consist of 13 power transmission projects, with a total network of 38 power transmission lines and 11 substations extending over 7,570 km and a transformation capacity 13,350 MVA, spread over 17 Indian states and 1 Union Territory.
NER-II is part of Inter State Transmission Scheme (ISTS) network, and was awarded on a build, own, operate, maintain basis with a contractual period of 35 years. The project has 11 elements including two substations of 1,260 MVA capacity and four transmission lines extending over 830 km. This project will strengthen the power transmission network in the North Eastern States and address the of transmission, sub-transmission, and distribution system needs of the region.
The acquisition will be funded through a combination of internal accruals, debt, equity proceeds from the preference issue done in May 2019 and forthcoming rights issue. Post this acquisition, the net debt/AUM would stand at around 64 %.
Source: T&D India