Resurgent Power Ventures Pte Ltd on Saturday said it has completed the acquisition of South East UP Power Transmission Company through the insolvency process.
Resurgent Power, a joint venture based out of Singapore, is co-sponsored by Tata Power and ICICI Venture and it has other global institutions as investors.
According to the resolution plan, the transaction entailed payment for a one-time settlement of outstanding debt and purchase of equity shares for a consideration of Rs 3,251 crore and a payout of existing cash balance of the company.
The acquirer has funded the transaction through a mix of shareholder funds and loans drawn down from the State Bank of India.
South East UP Power was incorporated as a special purpose vehicle formed by UP Power Transmission Company Limited on September 11, 2009 to implement and operate the specified intra-state transmission system for 35 years under the public-private partnership model on build-own-operate-maintain & transfer basis.
It has around 1,500 km of transmission line (765 kV and 400 kV) and 5 substations (765 kV and 400 kV). This is divided into two groups — the first consisting of transmission lines of length about 600 km and the second consisting of transmission lines of length of about 900 km. The company posted revenues of almost Rs 456 crore in the previous fiscal and Rs 498 crore in 2019-20.
