Qatar Investment Authority’s $450 Million Investment in Adani Electricity Mumbai Limited

Cleary Gottlieb advised Qatar Investment Authority on an acquisition by its subsidiary of a 25.1% stake in Adani Electricity Mumbai Limited.

Adani Transmission Limited (“ATL”), Adani Electricity Mumbai Limited (“AEML”) and a subsidiary of Qatar Investment Authority (“QIA”) have signed definitive agreements for the sale of a 25.1% stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML. The total QIA investment in AEML will be approximately INR 3,200 Crore (equivalent to approximately $450 million).

The transaction is expected to complete in early 2020 subject to receipt of regulatory approvals and satisfaction of customary conditions precedent.

As part of the Transaction, ATL and QIA have agreed definitive plans to ensure that over 30% of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023. In addition, ATL and QIA have agreed a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy.

AEML, part of the Adani Group, is the licensee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers across a license area of approximately 400 square kilometers in the city of Mumbai, the world’s seventh largest city by size of population. AEML’s market share of Mumbai is approximately 87% by license area, 67% by consumers served and 55% by electricity supplied.

Qatar Investment Authority is the sovereign wealth fund of the State of Qatarand is a major contributor to realizing the Qatar National Vision of 2030. QIA was founded in 2005 to strengthen the country’s economy by diversifying into new asset classes.

The Cleary Gottlieb team included partners Tihir Sarkar (Picture) and Nallini Puri and associates Surya Banerjee, Mohamed Taha, and Pamela Holmes who advised on the equity aspects of the transaction. Partner Polina Lyadnova and associate Sarah Haddad advised on the debt aspects of the transaction. Counsel Paul Gilbert advised on antitrust matters. Partner Richard Sultman, counsel Jen Maskell, and associate Eloise Skinner advised on tax matters. Senior attorney Jim Corsiglia advised on ABC-related matters.

Involved fees earner: Surya Banerjee – Cleary Gottlieb Steen & Hamilton; James Corsiglia – Cleary Gottlieb Steen & Hamilton; Paul Gilbert – Cleary Gottlieb Steen & Hamilton; Sarah Haddad – Cleary Gottlieb Steen & Hamilton; Pamela Holmes – Cleary Gottlieb Steen & Hamilton; Polina Lyadnova – Cleary Gottlieb Steen & Hamilton; Jennifer Maskell – Cleary Gottlieb Steen & Hamilton; Nallini Puri – Cleary Gottlieb Steen & Hamilton; Tihir Sarkar – Cleary Gottlieb Steen & Hamilton; Eloise Skinner – Cleary Gottlieb Steen & Hamilton; Richard Sultman – Cleary Gottlieb Steen & Hamilton; Mohamed Taha – Cleary Gottlieb Steen & Hamilton;

Law Firms: Cleary Gottlieb Steen & Hamilton;

Clients: Qatar Investment Authority;