Adani’s pact to buy stake in Odisha Power Generation Corp cancelled
Mumbai: Adani Power’s agreement with AES OPGC Holding and AES India for acquisition of 49 per cent stake in the Odisha Power Generation Corporation (OPGC) has been cancelled as the Odisha government, which holds 52 per cent stake in OPGC has exercised the right of first refusal.
In June, Adani Power Ltd had entered into a share sale and purchase agreement (SSPA) to acquire, from AES OPGC Holding and AES India Private Ltd, a total of over 89 lakh equity shares held in OPGC representing 49 per cent of the total issued paid-up and subscribed equity share capital of OPGC. The cash consideration of the proposed sale was $135 million.
“We hereby inform you of further development in this matter that the sellers have intimated to the company vide their communication dated December 24, 2020 that the Government of Odisha, who are holding the balance 92,94,735 shares representing 51 per cent of the share capital of OPGC, have exercised their Right of First Refusal (RoFR) to purchase AED shareholding in OPGC,” Adani Power said in a regulatory filing.
Accordingly, the sellers have transferred the AES shareholding in OPGC to the agency authorised by the Odisha government. With this development, the SSPA signed in June has ceased to be effective.
OPGC is engaged in the business of establishing, operating and maintaining thermal power generating stations in Odisha.