Subhash Chandra's Essel to sell solar units to Adani

Subhash Chandra-led Essel Group has sealed a deal with Adani Green Energy Ltd (AGEL) to sell its solar units in Punjab, Karnataka and Uttar Pradesh for an enterprise value of Rs 1,300 crore.

"The Group has signed an agreement with Adani Green Energy Ltd (AGEL) to sell 205 MW operating solar assets of Essel Green Energy Private Ltd and Essel Infraprojects Ltd at an enterprise value of Rs 1,300 crore. The assets are located in Punjab, Karnataka and Uttar Pradesh," Essel Group said in a statement.

All the assets have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies.

The diversified group, which runs the Zee network of channels, said that it remains focused towards its commitment made to its lenders and is furthermore confident on completing the overall repayment process.

"The Group is also constantly working towards arriving at a closure on the divestment of the additional 480 MW solar assets portfolio," it said.

An Essel Group spokesperson noted that its asset divestment process is well within the purview of the agreed timelines with its lenders.

"The sale of the Group's solar assets to AGEL is yet another positive step taken in this direction," the executive said.

The proceeds from the solar asset sale are set to help promoters of Essel group to bring down its debt level.

The promoter's debt which was earlier Rs 11,000 crore got reduced by Rs 4,224 crore post Invesco Oppenheimer deal, bringing the figure down to Rs 6,776 crore.

US-based Invesco-Oppenheimer Developing Markets Fund had last month agreed to pick up 11 per cent stake in Zee Entertainment Enterprises Ltd (ZEEL), the flagship media company of Essel Group, for a total of up to Rs 4,224 crore.

( With inputs from IANS )