Vedanta To Acquire Meenakshi Energy For Rs 1,440 Crore
The acquisition is subject to approval from the National Company Law Tribunal, Vedanta said.
Vedanta Ltd. will acquire the embattled power company Meenakshi Energy Ltd. for Rs 1,440 crore.
The Anil Agrawal-led company was declared the successful bidder under the corporate insolvency resolution process for Meenakshi Energy today. Following this, the board of the company approved the acquisition of the thermal power company, the mining major said in an exchange filing on Wednesday.
The acquisition is subject to approval from the National Company Law Tribunal, it said.
Under its acquisition plan, Vedanta will pay Rs 312 crore upfront in cash. The balance Rs 1,128 crore will be paid in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy to financial creditors. These debentures will have to be repaid in five equal instalments over a period of five years, starting from the end of second year.
The acquisition is expected to be closed by the end of the next fiscal.
Meenakshi Energy runs a two-phase, 1,000 MW coal-based power plant in Nellore, Andhra Pradesh. Insolvency proceedings were initiated against the power generator in November 2019.
Vedanta currently expects to operate the complete capacity of Meenakshi Energy as an independent power producer.
The mineral conglomerate will cater to the needs of the market by entering into short- or medium-term power purchase agreements and by supplying power to merchants.
The acquisition will enhance the group’s portfolio in power, Vedanta said.
Prior to the announcement, the Vedanta stock closed 1.9% higher at Rs 324 per share, against a rise of 0.62% in the Nifty 50.
