The deadline for completing the acquisition of DB Power was extended four times after the initial agreement was signed in August of last year.
The planned 7,017-crore acquisition of DB Power Ltd’s thermal power assets by billionaire Gautam Adani-Adani Power collapsed after the deadline to conclude the transaction expired. The acquisition agreement was announced in August 2022.
“We desire to advise that the lengthy stop date under the memorandum of understanding dated August 18, 2022, has expired,” Adani Power said in an exchange filing on Wednesday, without elaborating on the date extension or deal renegotiation.
The Adani Group’s power sector business effectively canceled the acquisition contract by declaring the expiration of the extended stop date.
The deadline for completing the acquisition of DB Power was extended four times after the initial agreement was signed in August of last year.
This comes as US-based short seller Hindenburg Research accuses the Adani Group of misusing offshore tax havens and stock manipulation. The corporation has denied all allegations of wrongdoing.
The negative report from the Hindenburg has thrown Adani into difficulty, wiping $120 billion off the value of the group’s companies.
Earlier in August 2022, Adani Power announced to the stock exchanges that it has agreed to acquire DB Power, which owns and operates an operating 2×600 MW thermal power plant in Chhattisgarh’s district Janjgir Champa.
DB Power has long and medium-term power purchase agreements for 923.5 MW of its capacity, which is supported by fuel supply arrangements with Coal India Ltd, and its facilities are profitable.
In Chhattisgarh, DB Power is in the business of developing, operating, and maintaining a thermal power-producing station.
It was registered with the Registrar of Companies in Gwalior on October 12, 2006. DB Power’s turnover for the last three fiscal years has been 3,488 crores (for FY 2021-22), 2,930 crore (for FY 2020-21), and 3,126 crores (for FY 2019-20), respectively.
DB Power’s holding company is DPPL (Diliigent Power Pvt Ltd).
