CLP India Enters Power Transmission Business, Buys Three Kalpataru Assets
The asset sale to CLP India will lead to significant reduction in KTPL’s debt and help focus on its diversification plans.
Kalpataru Power Transmission Ltd. has entered into binding agreements with Canada pension fund CDPQ’s CLP India Pvt. Ltd. to sell its stake in three power transmission assets at an enterprise valuation of Rs 3,275 crore.
KPTL is selling stake in Kalpataru Satpura Transco Pvt. Ltd., Alipurduar Transmission Ltd. and Kohima Mariani Transmission Ltd., Kalpataru Power Transmission said in a BSE filing. "As a part of this deal, the transaction for ATL and KMTL will be effective post commercial operation date and fulfilment of certain conditions," the company added.
Construction engineering company Techno Electric & Engineering Co. Ltd. owns 26 percent stake in Kohima Mariani Transmission Ltd.
"The sale of assets will lead to a significant reduction in KPTL's consolidated debt and will help focus on strategic diversification within core business. KPTL will continue to focus on sustainable and profitable growth with commitment to improve return ratios," KPTL CEO Manish Mohnot said.
KPTL debt at the asset level would be about Rs 2,000 crore at the time of the commercial operation date.
The acquisition of KPTL assets will enable CLP India to expand its geographical reach across the country and reinforce its commitment to grow its investments, said CLP India Managing Director Rajiv Mishra.
"The Indian market is a primary growth market for CLP and CDPQ and the two firms share a vision to invest only in a low carbon, clean energy portfolio in India. Entering the transmission sector is a landmark for CLP India," he said.
The KPTL asset sale to CLP India is subject to requisite approvals and compliances.
Financial consultancy EY and corporate law firm Khaitan & Co. are advisors to KPTL and Techno for the transaction.
CLP India is owned by CLP Group, one of the largest investor-owned power businesses in Asia, and CDPQ, one of Canada's leading institutional fund managers.