Mumbai : Kalpataru Power Transmission Ltd (KPTL) today announced that it has entered into binding agreements with CLP India Private Limited to sell its stake in 3 (Three) power transmission assets namely, Kalpataru Satpura Transco Private Limited (KSTPL), Alipurduar Transmission Limited (ATL) and Kohima Mariani Transmission Limited (KMTL) (referred jointly as SPVs), for an estimated enterprise value of Rs. 3,275 Crores. The transaction is subject to requisite approvals and compliances.
As a part of this deal, the transaction for ATL and KMTL will be effective post-Commercial Operation Date (COD) and fulfilment of certain conditions. Techno Electric & Engineering Company Limited (Techno) owns 26% stake in KMTL. The estimated amount of debt at the SPVs levels would be approximately Rs. 2,000 Crores at the time of COD. Ernst & Young (EY) and Khaitan & Co. are advisors to KPTL and Techno for this transaction.
“The sale of transmission assets is a landmark event in KPTL’s growth journey. The sale of assets is a milestone and a testament to our ability to create, operate, and hive off the assets at the right moment. The sale of assets will lead to a significant reduction in KPTL’s consolidated debt and will help focus on strategic diversification within core business. KPTL will continue to focus on sustainable and profitable growth with commitment to improve return ratios” Mr. Manish Mohnot, Managing Director & CEO, KPTL said.