Qatar Investment Authority agrees for 25.1% investment in Adani Electricity Mumbai Ltd

Adani Transmission Limited (ATL), Adani Electricity Mumbai Limited (AEML) and a subsidiary of Qatar Investment Authority (QIA) have signed a definitive agreement for the sale of a 25.1% stake in AEML to QIA and for an investment in subordinated shareholder debt by QIA in AEML. The total investment of QIA in AEML will be approximately INR3,200 crores (US$452 million).

AEML is the licensee of a distribution, transmission and power generation company that currently serves more than 3 million consumers in a license area of ​​approximately 400 square kilometers in the city of Mumbai. AEML's share of the Bombay market is approximately 87% per license area, 67% for consumers it serves and 55% for electricity provided.

As part of the transaction, ATL and QIA agreed on definitive plans to ensure that more than 30% of the electricity provided by AEML is taken from solar and wind power plants by 2023.

The transaction is expected to be completed in early 2020, subject to obtaining regulatory approvals and satisfying the usual precedent conditions.

SKN Advisors Limited served as financial advisor and Cyril Amarchand Mangaldas acted as a legal advisor for ATL and AEML.

JP Morgan served as financial advisor and Cleary Gottlieb Steen & Hamilton LLP and AZB & Partners acted as legal advisors for QIA.