Adani-Lanco Udupi deal hits deadline roadblock

MUMBAI: Five months after the formal announcement, Adani Power’s Rs 6,000-crore acquisition of Lanco Infratech’s 1200-mw thermal power plant in Udupi seems to have run into rough weather and delays.

Multiple sources directly involved with the ongoing discussions between both the companies and the consortia of bank lenders told ET that on December 29, the deadline for exclusive bilateral negotiations – long stop date in M&A parlance – had lapsed. This, say sources, brightens the prospect of several other suitors like JSW Energy and Tata Power-ICICI Venture to dive back into the fray all over again.

Last August, Gautam Adani had outsmarted Sajjan Jindal at the last minute to buy Lanco’s flagship imported coal-fired project. The deal, the largest in thermal power in terms of value and capacity, catapulted the Adani Group, already India’s biggest private sector power producer, to an even bigger league with a capacity of nearly 10,000 mw and provided them a toehold in South India.

At the same time, it also gave the cash-strapped power and road developer Lanco a much-needed opportuni ..
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