The Competition Commission of India (CCI) has approved the 100% acquisition of Lanco Amarkantak Power by Adani Group’s Adani Power. Earlier this month, Adani Power received the Committee of Creditors’ approval for the resolution plan to acquire insolvent Lanco Amarkantak Power.
Adani Power has been aggressively expanding its capacity. This is the company’s second acquisition under the insolvency resolution process in the financial year.
As per a government notification: “The Adani Power Limited (Acquirer), a part of the Adani Group, is a company incorporated under the laws of India. The Acquirer is engaged in the business of thermal power generation in India. The Acquirer operates its thermal power plants across multiple states in India, including Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Jharkhand and Madhya Pradesh. Adani group is a global integrated infrastructure player with businesses in key industry verticals – resources, logistics and energy.”
It added: “The Lanco Amarkantak Power Limited (Target), a part of the Lanco Group, is engaged in the business of thermal power generation in India. The Target is currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).”
The proposed combination relates to the acquisition of 100% equity share capital of the Target by the Acquirer.
Lanco Amarkantak Power operates two units of 300 megawatt (Mw) of thermal power each in Korba district of Chhattisgarh. The company has a 600 Mw capacity tied up under long-term power purchase agreements with the state distribution companies of Haryana and Madhya Pradesh.
In October last year, CCI approved the 100 per cent acquisition of Lanco Amarkantak Power by PFC Projects, REC, SJVN and Damodar Valley Corporation.
In another transaction, CCI has approves subscription to CCPS B of API Holdings by MEMG LLP and 360 ONE.
Shares of Adani Power closed at Rs 521.90, down by 1.71%.
