acquisition

State-owned power giant NTPC on Thursday said it has signed share purchase agreements to acquire the government’s stakes in THDCIL and NEEPCO for a total of Rs 11,500 crore.

NTPC has entered into share purchase agreements (SPAs) with the central government to acquire its 74.496 per cent equity stake in THDC India Ltd (THDCIL) for Rs 7,500 crore and its 100 per cent equity in North-Eastern Electric Power Corporation Limited (NEEPC) for Rs 4,000 crore, the company stated in two separate BSE filings on Thursday.

According to one of the filings, “The company has, on March 25, 2020, executed a share purchase agreement with the President of India for acquisition of legal and beneficial ownership of 3,60,98,09,800 equity shares held by the President of India in North Eastern Electric Power Corporation Ltd (NEEPCO).”

The agreement was also signed for the acquisition of beneficial ownership in 600 equity shares held by the nominees of the President of India in NEEPCO, it added.

It also added that the total stake for which the pact was signed, including nominees, represents 100 per cent of the total paid-up share capital of NEEPCO.

Another filing said, “The company has, on March 25, 2020, executed a share purchase agreement with the President of India for acquisition of legal and beneficial ownership of 2,73,09,406 equity shares held by the President of India in THDC India Ltd (THDCIL).”

The pact was also inked for the acquisition of beneficial ownership in six equity shares held by the nominees of the President of India in THDCIL, it added.

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It also added that the total stake for which the pact was signed, including nominees, represents 74.496 per cent of the total paid-up share capital of THDCIL.

The company said both acquisitions are subject to satisfaction of customary conditions. PTI KKS

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