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Adani Power has been selected to acquire GVK Energy through the insolvency process, adding a 330 MW hydropower project in Uttarakhand to its portfolio.
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Adani Power has received a Letter of Intent (LOI) to acquire GVK Energy Limited after the Committee of Creditors (CoC) approved its resolution plan for the company.
The LOI was issued by GVK Energy’s Resolution Professional at 9:35 a.m. on September 7, Adani Power said in a stock-exchange filing.
GVK Energy owns a 330 MW hydroelectric power project in Uttarakhand through its subsidiary, Alaknanda Hydro Power Company Limited. The proposed acquisition is being carried out through the corporate insolvency resolution process under the Insolvency and Bankruptcy Code.
The Competition Commission of India had approved Adani Power’s proposed acquisition of 100% of GVK Energy’s share capital and control in May.
Deal still needs regulatory approvals
The LOI does not mean the acquisition is complete. Adani Power said implementation of the resolution plan remains subject to the terms of the LOI and approvals from the Company Law Tribunal (NCLT), Hyderabad, as well as any other regulatory authorities, courts or tribunals where required.
Adani Power shares closed at ₹204.49 on the NSE on September 7, down ₹2.71, or 1.31%, from the previous close.
