Adani Transmission will buy the entire stake in MUL.

 At a cost of INR 116.27 crore, Adani Transmission will purchase 13,135,000 (100%) equity shares of MUL valued at INR 10 each.

According to a regulatory filing, Adani Transmission has entered into a share purchase agreement with Adani Ports and Special Economic Zone to purchase 100% equity stake in MPSEZ Utilities (MUL). 

 “…the Company (ATL) has signed a Share Purchase Agreement with Adani Ports and Special Economic Zone Limited (APSEZ) on 15th December, 2021 for acquisition of MPSEZ Utilities Limited (‘MUL’),” the filing said.  

It is estimated that Adani Transmission will acquire 13,135,000 (100%) shares of MUL for INR 10 each, at a cost of INR 116.27 crore. 

According to the filing, under terms of the share purchase agreement, the deal will be concluded within five days subject to the satisfaction of other conditions precedent (CPs). 

Incorporated on July 13, 2007. MUL was registered as a distribution licensee in Mundra SEZ area, Kutch, Gujarat. The company distributes electricity and treats effluent and sewage in an area that spread across 8,481 hectares.

As of today, MUL’s total distribution network is approximately 100 km in length, comprising 75 km of underground and 25 km of overhead lines. With a medium-term power purchase agreement, MUL distributes about 300 MU (million units), with a distribution loss of 3.46 per cent. 

With more industrial and commercial activities being added to MUL’s geography, it is expected that business in its distribution area will grow.

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