Jindal Power Exits Lanco Amarkantak Power Acquisition Race
In an unforeseen turn of events, Jindal Power, led by Naveen Jindal, has pulled out of the acquisition bid for Lanco Amarkantak Power. This development leaves Adani Power and Reliance Industries in the running to acquire the beleaguered thermal power company. The exclusive news was reported by Reader Wall.
Withdrawal despite Leading in Bids
Prior to the withdrawal, Jindal Power had surpassed Adani Power in the acquisition race with a higher bid. However, the tables have turned and the race has narrowed down to three bidders – Adani Power, Reliance Industries, and a consortium led by the Power Finance Corporation.
Uncomfortable with Offer Terms
As reported by Reader Wall, Jindal Power had submitted an application to the Amravati National Company Law Tribunal (NCLT), seeking to withdraw its petition on Tuesday. This development occurred despite Jindal Power outbidding Adani Power in an earlier round. Insiders claim that Jindal Power was not comfortable owing to the demand for unconditional and upfront offers, which ultimately led to its withdrawal.
Lanco Acquisition: the Current Scenario
With Jindal Power stepping down, Adani Power has emerged as the leading bidder in the race to acquire Lanco Amarkantak Power. Reliance Industries and the consortium led by Power Finance continue to be part of the competition. Before the exit, Jindal Power had offered a ₹4,203 crore cash bid accompanied by a ₹100-crore bank guarantee in a thrilling bidding war.
Meanwhile, Adani Power has increased its offer from ₹3,650 crore to ₹4,100 crore in January. Now, the final auction is expected to witness heated competition among Reliance, Power Finance-led consortium and Adani Power.
Lanco Amarkantak Power – A Financial Profile
Lanco Amarkantak Power came into the spotlight for acquisition after initiating corporate insolvency proceedings. The company runs a coal-based thermal power project situated on the highway linking Korba and Champa in Chhattisgarh state. It consists of two subcritical units each with a 600 MW capacity, located near Anpara in Uttar Pradesh. The fully-operational first phase of the company consists of two units, each capable of producing 300 MW.
Lanco is currently in the process of constructing the second phase, which will comprise two units, each able to generate 600 MW. Presently, Lanco holds ₹1,800 crore in liquid assets purely from the operations of the first-phase, confirms the Reader Wall report.
