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CESC subsidiary to acquire Chandigarh Power Distribution for Rs 871 crore: Rediff Moneynews

Posted on by L. Dreeye
CESC subsidiary to acquire Chandigarh Power Distribution for Rs 871 crore: Rediff Moneynews

CESC’s subsidiary Eminent Electricity Distribution Ltd has received a letter of intent to acquire the Chandigarh-based power distribution company after a delay of three years. The deal, worth Rs 871 crore, is expected to be completed within 30 days.

Kolkata, Nov 23 (PTI) After a wait of nearly three years due to legal disputes, Eminent Electricity Distribution Ltd, a subsidiary of CESC Ltd, has received a Letter of Intent (LOI) to acquire 100 percent stake in the Chandigarh-based Electricity Distribution and Retail Company. .

CESC, part of the RP-Sanjiv Goenka Group, emerged as the highest bidder for a deal worth Rs 871 crore, securing a tender for the distribution business in Chandigarh in 2021. However, the privatization proposal was contested by trade unions.

The Punjab and Haryana High Court recently rejected a petition filed by employees of the Chandigarh power department, paving the way for privatization of power distribution services in the Union Territory.

“We are writing to inform you that Eminent Electricity Distribution Ltd, a subsidiary of CESC Ltd, has received a letter of intent to acquire 100 percent shares of the distribution company responsible for power distribution and retail supply in the Union Territory of Chandigarh. ,” the company told exchanges on Friday.

The transaction, valued at Rs 871 crore, is subject to the terms and conditions laid down in the LOI and is expected to be completed within 30 days, the company said.

In the financial bidding, CESC outbid rivals like Torrent Power, NTPC Ltd and ReNew Power, which bid Rs 606 crore, Rs 563 crore and Rs 551 crore respectively, and some other players like Adani, Tata Power and Sterlite.

CESC is already involved in power distribution in cities like Noida (Uttar Pradesh), Kota, Bikaner and Bharatpur (entire Rajasthan) and Malegaon (Maharashtra), except Kolkata and Howrah in West Bengal.

The company reported 1.4% year-on-year growth in net profit to Rs 353 crore for the quarter ended September 30, 2024.

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