The Qatar Investment Authority (QIA) has agreed to acquire a 25.1% stake in Adani Electrical Mumbai Limited from its parent company, Adani Transmission Limited (ATL).
The sovereign wealth fund is paying approximately US$450 million, according to a statement from ATL.
Adani Electrical Mumbai says its market share of Mumbai is approximately 87% by license area, 67% by consumers served and 55% by electricity supplied.
As part of the deal, both the QIA and ATL have agreed “definitive plans to ensure that over 30% of the electricity supplied by Adani Electrical Mumbai Limited is sourced from solar and wind power plants by the year 2023.”
They added that “a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy” have been agreed.
Mansoor Al-Mahmoud, chief executive of the QIA said: “This investment demonstrates our confidence in India, with whom Qatar shares deep-rooted ties and excellent relations”.
The transaction is expected to be finalised in early 2020 pending regulatory approvals.
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