Billionaire Gautam Adani-led Adani Power said on Wednesday an agreement signed last year to acquire DB Power, which operates a thermal power plant in Chhattisgarh, for an enterprise value of Rs 7,017 crore, has expired. The date to complete the process was extended four times after the initial deal was signed in August 2022.“We wish to inform that the long stop date under the memorandum of understanding (MoU) dated August 18, 2022, has expired,” Adani Power said in a stock exchange notice on Wednesday, but did not provide details as to whether the date will be extended or the agreement will be renegotiated. DB Power owns and operates a 2X6000 MW thermal power plant at Janjgir Champa district in Chhattisgarh. The initial term of the MoU was till October 31, 2022, which was extended by mutual agreement. The non-stop date was then extended to November 30, 2022, and to December 31, 2022, and then to January 15, 2023, and finally to February 15, 2023.The acquisition would have helped the company to expand its offerings and operations in the thermal power sector in Chhattisgarh.
The transaction was subject to regulatory and other customary approvals, including that from the Competition Commission of India, it had said. The firm, which has been operating its facilities profitably, had long- and medium-term power purchase agreements for 923.5 MW of capacity and was backed by fuel supply agreements with Coal India. DB Power had posted a turnover of `3,488 crore for FY22, `2,930 crore for FY21 and `3,126 crore for FY20, respectively. Meanwhile, Adani Enterprises, which had scaled up operations at a breakneck speed over the past few years, said it would refrain from bidding for new projects till the time the volatility in the market remains, one of its top officials said. “We will not make new commitments till we settle this volatility period,” Jugeshinder Singh, group CFO, Adani group, told analysts in a post earnings call. He, however, added that the group will come out with a formal plan over the next six weeks as part of the March quarter results.