Adani Transmission has reportedly entered into an agreement with KEC International for acquiring a transmission project, as the billionare Gautam Adani-led company continues to snap up power assets.
It has been stated that Adani Transmission will buy KEC Bikaner Sikar Transmission for an enterprise value of Rs 227.5 crore ($31 million) in cash.
This particular acquisition is in sync with the company’s strategy to enhance the value for its stakeholders through organic as well as inorganic opportunities as mentioned by the company, and, this transaction is expected to be completed in two to three months subject to all necessary regulatory approvals.
Vimal Kejriwal, the managing director and chief executive at KEC International mentioned that the sale is in line with its strategy of being an asset-light company and focus on its major business of providing engineering, procurement and construction services to the infrastructure sector.
The company which is a part of Adani Group has a total power transmission network of around 12,923 circuit km including this acquisition. This comprises 10,357 circuit km under operation and 2,566 circuit km under various stages of construction.
KEC International, part of Harsh Goenka-led RPG Group that operates in power transmission and distribution, railways, cables and civil construction businesses. Talking about its revenue, the company’s consolidated revenue was Rs 10,096 crore for the year through March 2018, up from Rs 8,755 crore in the previous year.