Anil Agarwal led Vedanta Ltd will acquire debt-ridden power plant Meenakshi Energy Ltd for Rs 1,140 crore, the company has said in a regulatory filing after it was declared as successful bidder.
"Vedanta Limited shall acquire 100% of the paid-up capital and management control of Meenakshi Energy Limited," the company said in the filing.
According to the filing, Vedanta said that of the total consideration, the company will pay Rs 312 crore upfront and balance Rs 1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy to the financial creditors.
The consideration will mature in five equal instalments over a period of five years.
"Balance Rs 1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy Limited to the Financial Creditors to be repaid in 5 equal installments over a period of 5 years starting from the end of 2nd year," said Vedanta in its filing.
The acquisition will be completed by FY 2024. However, the approval of National Company Law Tribunal is pending.
Meenakshi Energy Limited is a 1000 MW power plant located at Nellore district of Andhra Pradesh. The company was admitted in the insolvency process on November 7, 2019. The bid submitted by Vedanta Limited was approved by the committee of creditors vide letter of intent on Wednesday.