Adani buys Lanco's Udupi power plant for Rs. 6,000 cr.

Adani Power has bought Hyderabad-based Lanco Infratech's Udupi power plant at an enterprise valuation of Rs. 6,000 crore. While Adani will take over the plant's Rs. 4,000 crore worth of debt, Lanco will receive Rs. 2,000 crore in cash, which it plans to use for lowering its debt.

This is the largest acquisition in the thermal power space. According to bankers, Adani Power pipped JSW Energy in the negotiations and announced the transaction within two weeks of starting talks. Also, it is another large deal announcement in the power sector, coming within weeks of Reliance Power's to buy the Jaypee group's hydropower assets for a reported valuation between Rs. 12,000 crore and Rs. 15,000 crore. The Jaypee-Reliance Power deal will close by the end of the year.

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