Adani Power Adani Power cancels Rs 70.2 billion DB Power buyout in Chhattisgarh
Mumbai/IBNS: Adani Power has informed the stock exchanges that it has cancelled its proposal to purchase a coal plant project located in central India and that there has been no further development on this issue, news agency ANI reported.
Adani Power agreed in August 2022 to acquire DB Power at an enterprise value of Rs 70.2 billion ($850 million). The acquisition was later approved by the Competition Commission of India in September.
Enterprise value (EV) represents the total value of a company, including the market value of its outstanding debt, preferred stock, and equity. It is used to determine the value of a business as a whole and takes into account all the capital structure components, rather than just the stock price. Essentially, it is the theoretical amount of money required to acquire an entire company or business.
Amid the media reports that Adani Power had backed out, the company informed both the domestic bourses—NSE and BSE—on Tuesday about its decision to call off the acquisition, the report said.
Adani Power and DB Power have mutually decided to cancel the transaction after the expiration of the long-stop date on February 15. DB Power currently manages a 1.2-gigawatt coal power project situated in Chhattisgarh, it added.
The acquisition of DB Power, which runs a 2x600 MW coal-fired power plant in the Janjgir Champa district of Chhattisgarh, was anticipated to enhance Adani Power's presence and activities in the thermal power sector in the state.
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