Adani Power's deal to acquire DB Power expires

Gautam Adani-led Adani Power's Rs 7,017-crore acquisition of DB Power assets has lapsed as the transaction deadline expired. Adani Power had in August last year signed an agreement to acquire DB Power for an enterprise value of Rs 7,017 crore. DB Power operates a thermal power plant in Chhattisgarh.

"We wish to inform that the long stop date under the memorandum of understanding dated August 18, 2022, has expired," Adani Power said in an exchange filing on Wednesday.

The date to complete the deal was extended four times after the initial signing of the deal. The acquisition's date was last pushed to February 15 in January.

Click Here For Latest Updates On Stock Market | Zee Business Live

The development assumes significance as it comes in the backdrop of the US-based short-seller Hindenburg Research's adverse report about Adani Group. The report accused the Ahmedabad headquartered conglomerate of fraud and stock manipulation; charges categorically denied by the Adani Group.  

Earlier on August 19, 2022, Adani Power in an exchange filing had informed the exchanges that it has agreed to acquire DB Power, which owns and operates a running 2x600 MW thermal power plant at district Janjgir Champa in Chhattisgarh.

DB Power has long and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Ltd, and has been operating its facilities profitably. DB Power is engaged in the business of establishing, operating and maintaining a thermal power generating station in Chhattisgarh.

Also, read- What is credit card balance transfer? How it can help you save money - Know details