M&A

M&A

Resurgent Power acquires South East UP Power Transmission Company

Economic Times  

Resurgent Power Ventures has completed the acquisition of South East UP Power Transmission Company (SEUPPTCL) through the insolvency process. The transaction entailed payment for one-time settlement of outstanding debt and purchase of equity shares for a consideration of INR 3,251 crore and payout of existing cash balance of SEUPPTCL. The acquisition has been funded through a mix of shareholder funds and loans raised from State Bank of India. SEUPPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company Limited (UPPTCL) in 2009 to implement and operate the specified intra-state transmission system for 35 years. SEUPPTCL has around 1,500 kilometres of transmission line and 5 sub-stations. About 900 kilometres of transmission link under the project is still to be completed. Resurgent Power was set up to acquire stressed assets in the Indian power sector. Tata Power owns 26% stake in Resurgent Power. ICICI Bank owns 10% stake in Resurgent Power and the balance 64% is owned by the other global investors.