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Adani Green Energy to Buy Solar Assets of Essel Group

Power News - Published on Mon, 02 Sep 2019

Image Source: economictimes.indiatimes.com
Subhash Chandra-promoted Essel Group has reached an agreement to sell 205 MW of operating solar assets of Essel Green Energy and Essel Infraprojects at an enterprise value of INR 1,300 crore to Adani Group. The solar assets, located in Punjab, Karnataka and Uttar Pradesh, will be acquired by Adani Green Energy. The assets have long-term power purchase agreements with various state electricity distribution companies. The average remaining PPA life for the portfolio is around 22 years. The Adani deal is part of the divestment process of the Essel Group promoters to reduce debt and repay its lenders by September 30. The company has a debt of over INR 11,000 crore. Last month, it announced the sale of 11% in Zee Entertainment Enterprises to financial investor Invesco Oppenheimer Fund for INR 4,224 crore.

ET had reported on August 9 that Essel Group is in the final leg of negotiations with Adani Group to sell part of its operational solar assets and an announcement was expected this month. Essel Group’s solar energy portfolio consists of 685 MW of installed and under-construction projects. The company said it is also in talks to sell the remaining 480 MW assets.

An Essel Group spokesperson said that “Our asset divestment process is well within the purview of the agreed timelines with our esteemed lenders. The sale of the solar assets to Adani Green Energy is yet another positive step taken in this direction. We have maintained a constant process of identifying the right potential partner for the sale of our precious infra assets and we are extremely glad to sign the agreement with Adani Green Energy.”

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Posted By : Rabi Wangkhem on Mon, 02 Sep 2019
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