Adani Power's Deal To Acquire DB Power Expires; a Result of Hindenburg Row? The date to complete the process of acquisition was extended four times after the initial deal was signed in August last year
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Adani Power's INR 7,017 crore acquisition of DB Power has failed as the deadline to complete the transaction expired. "We wish to inform you that the long stop date under the memorandum of understanding dated August 18, 2022, has expired," Adani Power said in an exchange filing on Wednesday. The company did not provide any information about the extension of dates.
This development comes after Hindenburg Research released a report on the Adani Group, accusing it of stock manipulation and accounting fraud. The damning report has plunged Adani into crisis.
The date to complete the process of acquisition was extended four times after the initial deal was signed in August last year. The companies had signed an agreement on August 18, 2022, according to which the initial term of the MoU was till October 31, 2022. However, the deadline was extended to November 30, December 31 and subsequently to January 15 and then February 15.
Earlier in August 2022, Adani Power had informed that it agreed to acquire DB Power, which owns and operates a running 2x600 MW thermal power plant at district Janjgir Champa in Chhattisgarh.
"DB Power has long and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Ltd, and has been operating its facilities profitably," stated a BSE filing dated August 2022.
With this acquisition, Adani Power wanted to expand its offerings and operations in the thermal power sector in the state of Chhattisgarh.
DB Power is engaged in the business of establishing, operating and maintaining thermal power generating operations in the state of Chhattisgarh and Diligent Power Private Ltd is its holding company. DB Power was incorporated on October 12, 2006 under the Registrar of Companies, Gwalior.
