CESC takes 51 per cent in Dhariwal Infrastructure for Rs200 crore
28 Aug 2009
RPG Group company CESC Ltd has acquired a majority 51 per cent stake in unlisted power plant developer Dhariwal Infrastructure Pvt Ltd, its vice chairman Sanjiv Goenka said on Friday.
Dhariwal Infrastructure, a Manikchand group company which is setting up a 600 MW thermal power generating station at Chandrapur in Maharashtra, will now become a CESC subsidiary.
CESC vice chairman Sanjiv Goenka said the company has built up a Rs1,000-crore corpus to fund similar acquisitions in the future.
"The size of this war chest for acquisitions is about Rs1,000 crore. Talks are on with a few potential takeover candidates and negotiations are at various stages. We will make announcements as and when they mature. CESC is open to taking over more power companies in Maharashtra and the companies we are in talks with are all outside Bengal," said Goenka.
CESC's acquisition was an all-cash deal, financed from internal accruals, for a management stake in DIL. Consultant firm, KPMG advised DIL on the sell-off, while CESC negotiated the takeover with its own set of experts.
The Rs800-crore Manikchand group is into pan masala, mouth fresheners, packaged water, offset printing, wedding card, flexible packaging, electrical switches and flour mill. This is CESC's first venture in western.
