Anil Ambani-led Reliance Infrastructure Ltd signed a binding term sheet for the sale of its transmission assets to Adani Transmission Ltd. The proceeds from the sale will be used entirely for debt reduction, the company said in a press release, without disclosing the deal size.
Reliance Infrastructure’s long-term borrowing stood at Rs 21,806.5 crore as of March 31, 2016. The total debt of the company, including short-term debt, was Rs 42,356.9 crore, according to the company’s March 2016 earnings report.
The sale is expected to be completed in the current financial year, Adani Transmission said in a separate press release.
Reliance Infrastructure values its transmission business at Rs 7,000 crore, according to data available on its website.
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