Vedanta to acquire Meenakshi Energy for Rs 1,440 crore through insolvency
Out of the total consideration, Rs 312 crore will be paid upfront and the balance Rs 1,128 crore will be paid in five equal installments over a period of five years
Anil Agarwal-promoted Vedanta on Wednesday said it will acquire bankrupt thermal power company Meenakshi Energy for Rs 1,440 crore through an insolvency process.
Vedanta which made the highest bid for the thermal power company emerged as the successful bidder.
"Post submission of bid for Meenakshi Energy Limited under Corporate Insolvency Resolution Process (CIRP) under IBC, Vedanta Ltd has been declared successful bidder on January 18, 2023 subsequent to which board of directors of Vedanta Limited has approved the acquisition of Meenakshi Energy Ltd," oil-to-metal conglomerate said in a regulatory filing.
The acquisition is estimated to be completed in FY24.
Meenakshi Energy Ltd is a 1,000-MW coal-based power plant located at Nellore, Andhra Pradesh.
On the cost of acquisition, Vedanta said that "the consideration payable is Rs 1,440 crore."
Out of the total consideration, Rs 312 crore will be paid upfront and the balance Rs 1,128 crore will be paid in five equal installments over a period of five years.
"Out of the total consideration, Rs 312 crore shall be paid upfront and balance Rs 1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy Limited to the financial creditors to be repaid in five equal installments over a period of five years starting from the end of second year," the filing said.
The insolvency process for the thermal power company promoted by Hemant Kanoria and his family began in November 2019.
The resolution professional had received resolution plans from companies like Vedanta and Naveen Jindal-promoted Jindal Power.
The bid submitted by Vedanta was approved by the committee of creditors on January 18, 2023.
The filing further said that the approval of National Company Law Tribunal is pending.
Vedanta currently envisages to operate 1,000 mw of Meenakshi Energy Limited as an independent power producer to carter to the needs of the market by entering into short or medium term power purchase agreements and by supplying power to merchants.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
10:32 PM IST