AESL acquires 100% of Vizag Power Transmission, SPV to serve estimated 4,500 MW green hydrogen demand Energy Watch
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AESL acquires 100% of Vizag Power Transmission, SPV to serve estimated 4,500 MW green hydrogen demand

AESL said it executed a share purchase agreement with RECPDCL to acquire Vizag Power Transmission Limited in full

EW Bureau

New Delhi: Adani Energy Solutions Limited (AESL) has told the stock exchanges that it executed a Share Purchase Agreement (SPA) with REC Power Development and Consultancy Limited (RECPDCL) on Friday. The agreement is for the acquisition of 100 percent of the equity shares of Vizag Power Transmission Limited (VPTL).

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AESL said the intimation follows its earlier disclosure of July 24, when it declared winning a ~Rs 8,500 crore transmission project in Andhra Pradesh.

What the company says the SPV is for

AESL said VPTL has been planned to facilitate the integration and supply of power to proposed green hydrogen and green ammonia projects in the Vizag area. It said those projects cater to an estimated demand of around 4,500 MW.

The company described the acquisition as furthering its strategy of enhancing shareholder value through organic and inorganic opportunities.

VPTL is classified in the filing under electric utilities, as a transmission service provider.

Terms of the acquisition

The consideration is in cash, according to the filing. AESL said the equity shares are being acquired at a face value of Rs 10 each. The filing does not state a total consideration amount.

The company said the acquisition is complete. It said no governmental or regulatory approvals were required for it.

AESL stated that the acquisition does not fall within related party transactions.

The target entity

VPTL was incorporated in India and registered with the Registrar of Companies, New Delhi, on February 16, according to the filing.

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Its authorised share capital is Rs 5 lakh. Its paid-up share capital is also Rs 5 lakh. AESL recorded turnover as not applicable, and said a three-year turnover history is not applicable for the entity.

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