Adani Power, a subsidiary of the adani Group, is set to acquire Lanco Amarkantak, a power company grappling with financial challenges for several years. The proposed deal, which has received approval from the Competition Commission of india (CCI), will mark a significant development in the power sector. adani Power emerged as the successful bidder last month with an offer of approximately Rs 4,000 crore to purchase Lanco Amarkantak, which is undergoing bankruptcy proceedings.
Lanco Amarkantak Power, primarily engaged in thermal power generation, faced significant debt issues, leading to its insolvency resolution process. Adani's substantial bid reflects its strategic interest in acquiring Lanco Amarkantak Power, which operates active power plants in the South indian market. Notably, other industry giants, including Anil Agarwal's Vedanta, mukesh Ambani, and naveen Jindal, also expressed interest in the company during the auction process.
The path for Adani's acquisition was paved through a series of bidding rounds and offers made by various companies. The corporate insolvency process for Lanco Amarkantak Power commenced in september 2019, with initial bids from companies like Twin Star Technologies and the PFC Consortium. adani Group initially proposed Rs 3,650 crore in November, later enhancing its bid to Rs 4,101 crore in December.
Although Jindal Power initially offered Rs 4,203 crore in January, the company ultimately withdrew its bid, leading to Adani's successful bid for Lanco Amarkantak Power.
