Torrent Acquires CESC’s Wind Assets - Win-Win For Both: ICICI Securities
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ICICI Securities Report
Torrent Power Ltd. has entered into an share purchase agreement for 100% acquisition of Surya Vidyut Ltd., a wholly-owned subsidiary of CESC Ltd.
Such transactions are typically good for one and not for the other; however, in this case, it is a win-win for both due to the difference in their strategic intents – Torrent Power wanted to add renewable energy capacity without participating in highly competitive bids, while CESC aims to grow its distribution business and move away from RE generation.
Further, CESC will receive a value which is higher than the one ascribed to these low internal rate of return assets.
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