Adani Power Close to Emerges as Winner in Coastal Energen Acquisition Bid

23 Oct 2023 , 10:51 AM

Adani Power is on the verge of acquiring the bankrupt power company, Coastal Energen, for a sum of Rs 3,440 crore. After a competitive two-day bidding process, Adani Power emerged as the winning bidder on Saturday, while the other contender, Jindal Power, withdrew from the race.

Coastal Energen, currently undergoing corporate insolvency, attracted significant interest due to its status as one of the few operational power plants available for sale.

Adani Power’s offer is in collaboration with Dickey Alternative Investment Trust. Notably, the resolution professional had initially received three firm bids, including one from Sherisha Technologies, Jindal Power, and Dickey Alternative. Adani Power, despite not initially expressing interest, entered into a partnership with Dickey Alternative to submit a joint resolution plan.

Lenders facilitated a challenge mechanism auction to determine the final price, with PwC-backed resolution professional Radhakrishnan Dharmarajan setting a base price of Rs 2,809.12 crore.