Adani Power has terminated the agreement to acquire 49 per cent stake in Odisha Power Generation Corporation (OPGC) from the affiliates of the AES Corporation. The Odisha government, which holds 51 per cent stake in OPGC, had exercised Right of First Refusal (RoFR) to purchase the 49 per cent stake held by AES.
In June this year, Adani Power had announced inking a share sale and purchase agreement (SSPA) to acquire from AES OPGC Holding and AES India Pvt Ltd (collectively referred as sellers) total 89,30,237 equity shares held in OPGC representing 49 per cent of the total issued, paid-up and subscribed equity share capital. The Odisha government holds the balance 51 per cent stake in OPGC.
“The sellers have intimated (on) December 24, 2020 that Government of Odisha…have exercised their RoFR to purchase (49%) shareholding in OPGC. Accordingly, the sellers have transferred the AES Shareholding in OPGC to the agency authorised by the Government of Odisha. As a result of this development, the SSPA has ceased to be effective,” Adani Power said in a BSE filing on Thursday.
OPGC operates 1,740 MW thermal power plant at Banharpalli in Jharsuguda district, Odisha. This plant is the mainstay of Odisha for base load power supply and amongst the lowest cost power generators in the state. The supercritical capacity of 1,320 MW is a recently commissioned modern plant with low carbon footprint. The plant has a long-term power purchase agreement valid for 25 years with the state-owned off taker GRIDCO and sources fuel from a nearby captive mine.