Adani Power-Led Consortium Secures Letter of Intent for Coastal Energen Acquisition
Summary
Adani Power, at the helm of a consortium, has received a letter of intent (LoI) for acquiring Coastal Energen, which is currently in the midst of corporate insolvency resolution proceedings. A consortium led by the State Bank of India had extended loans to Coastal Energen for the establishment of a 1,200-megawatt thermal power project in Tamil Nadu. Coastal Energen currently manages two 600 MW units in Tamil Nadu and holds an active power purchase agreement with Tamil Nadu Generation and Distribution Corp (Tangedco) valid until September 2028 for one of its units. In October, Mutiara Energy Holdings proposed a comprehensive settlement of Rs 5,847 crore, encompassing a 15 per cent equity stake, amidst reports indicating Adani Power emerging as the successful bidder for the beleaguered power company. Closing at Rs 511.80 on the Bombay Stock Exchange (BSE), Adani Powers shares experienced a marginal decline of 0.05 per cent on Friday.