Co backed by Tata Power acquires UP energy firm - Times of India

Co backed by Tata Power acquires UP energy firm – Times of India

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MUMBAI: Tata Power and ICICI Venture-promoted Resurgent Power will take control of South East UP Power Transmission Company after offering over Rs 3,200 crore to the creditors of the bankrupt asset.
South East UP Power Transmission will be Resurgent and its 26% shareholder Tata Power’s first asset buy through the bankruptcy route. Tata Power’s sister concern Tata Steel had snapped up Bhushan Steel under insolvency proceedings four years ago. Adani Transmission, Sterlite Power, REC and Power Grid Corp too had shown interest in South East UP Power Transmission.
Incorporated in September 2009, South East UP Power Transmission had won the contract to construct and operate a power transmission network in Uttar Pradesh for 35 years. But the project ran into financial troubles due to the bankruptcy of its Spanish shareholder Isolux Corsan. Subsequently, the creditors dragged the Indian company to the bankruptcy court after it defaulted on loans.
Resurgent, in which Kuwait Investment Authority and Oman Investment Authority also own a stake, plans to invest fresh equity and raise new debt in South East UP Power Transmission to complete the remaining elements of the project and turnaround the asset. After the equity infusion and debt-raise, the enterprise value of the company will be over Rs 6,000 crore, Tata Power said.
The acquisition will diversify Resurgent’s portfolio after it revived the fortunes of Prayagraj Power Plant, which it had bought in 2019. Last November, it had acquired the System Strengthening Scheme in Northern Region NRSS XXXVI Transmission (a transmission project spread across Haryana, Rajasthan and Uttarakhand).



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