JKTPL is a joint venture between KPTL and Techno Electric & Engineering Company Ltd (TEECL) wherein KPTL is currently holding 49.72 per cent equity
New Delhi: Kalpataru Power Transmission Ltd (KPTL) on Friday announced signing of an agreement to divest its entire stake in Jhajjar KT Transco Private Ltd (JKTPL) for an enterprise value of Rs 310 crore. The transaction, KPTL said, is also subject to requisite approvals and compliances.
KPTL announced the execution of share purchase agreement to sell its entire stake in JKTPL to India Grid Trust (IndiGrid) for “a total enterprise value (EV) of JKTPL at about Rs 310 crore”, subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction, a KPTL statement said.
JKTPL is a joint venture between KPTL and Techno Electric & Engineering Company Ltd (TEECL) wherein KPTL is currently holding 49.72 per cent equity.
JKTPL holds the first power transmission project secured by KPTL and TEECL on design-build-operate-transfer (DBFOT) basis.
The project comprises of three 400 kV power transmission lines and two 400 kV and sub-stations in state of Haryana.
EY and Khaitan & Co are advisors to KPTL and TEECL for this transaction.
Commenting on the asset sale, Manish Mohnot, managing director and CEO, KPTL, said in the statement, “This transaction is a major milestone and example of an accretive capital allocation process that KPTL has employed over the past several years.”
“We are also progressing well on sale of other T&D assets and expect to close the same in FY21. Divestment of T&D assets will strengthen our EPC business and will allow us to focus on growth opportunities and deliver value to our shareholders. KPTL remains committed to its target of being a debt free company by FY 2021 and build a robust EPC business,” he added.