Adani Power's acquisition of DB Power has come to an end

 

Billionaire Gautam Adani- Adani Power's plan to acquire thermal power assets of DB Power Ltd for ₹7,017-crore has failed as the deadline to complete the transaction has been missed. The agreement to acquire the company was announced in August 2022.

"We would like to inform that the long term period under the MoU dated August 18, 2022 has come to an end," Adani Power said in an exchange filing on Wednesday.

By announcing the end of the prolonged shutdown date, the power sector arm of the Adani Group has virtually called off the acquisition deal.

The date for completing the process of acquisition of DB Power was extended four times after the initial deal was signed in August last year.

This comes at a time when US-based short seller Hindenburg Research has accused the Adani group of improper use of offshore tax havens and stock manipulation. The group has denied any wrongdoing.

The adverse Hindenburg report has put Adani in jeopardy, wiping off nearly $120 billion from the value of the group companies.

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

DB Power has long and medium term power purchase agreements for 923.5 MW of its capacity, supported by fuel supply agreements with Coal India Limited, and is operating its facilities profitably.


DB Power is engaged in the business of setting up, operation and maintenance of Thermal Power Generating Stations in Chhattisgarh.

It was incorporated on October 12, 2006 under Registrar of Companies, Gwalior. DB Power has recorded a turnover of ₹3,488 crore during the last three financial years (for FY 2021-22); ₹2,930 crore (for FY 2020-21) and ₹3,126 crore (for FY 2019-20).

DPPL (Diligent Power Private Limited) is the holding company of DB Power.