Reliance Power Limited (RPower) has announced a significant move in its international operations, signing an agreement to sell its entire stake in its Indonesian subsidiaries for $12.00 million. This strategic decision, disclosed in a filing to the stock exchanges, marks a notable shift in the company's overseas portfolio.

Key Details of the Transaction

• Sale Agreement: RPower's subsidiaries, Reliance Power Netherlands B.V. and Reliance Natural Resources (Singapore) Pte. Ltd., have entered into a Share Purchase Agreement with Biotruster (Singapore) Pte. Ltd.
• Subsidiaries Involved: The sale includes 100% equity shareholding in five Indonesian step-down subsidiaries:
  1. PT Avaneesh Coal Resources
  2. PT Heramba Coal Resources
  3. PT Sumukha Coal Services
  4. PT Brayan Bintang Tiga Energi
  5. PT Sriwijaya Bintang Tiga Energi
• Transaction Value: The deal is valued at $12.00 million (Twelve Million United States Dollars).
• Expected Closure: The transaction is anticipated to be completed by December 30, 2025.

Financial Impact

The divestment appears to have minimal immediate financial impact on Reliance Power's operations:

• Revenue Contribution: The Indonesian subsidiaries generated no income in the last financial year.
• Net Worth: The subsidiaries collectively represented approximately 0.53% of RPower's consolidated net worth, valued at Rs. 16,909.00 lakh.

Transaction Details

• Buyer Information: The purchaser, Biotruster (Singapore) Pte Ltd., is not affiliated with Reliance Power's promoter group or any group companies.
• Related Party Transaction: The company has confirmed that this transaction does not fall under the category of related party transactions.
• Regulatory Compliance: The sale is being conducted outside any Scheme of Arrangement and complies with the necessary regulatory requirements.

Company's Perspective

While Reliance Power has not provided specific reasons for the divestment in the disclosure, the move could be seen as part of the company's strategy to streamline its international operations and focus on core assets.

This transaction underscores the dynamic nature of the power sector and Reliance Power's adaptive approach to its global portfolio management. Stakeholders will be keenly watching how the company utilizes the proceeds from this sale and its impact on future strategic decisions.

As the deal progresses towards its expected closure by the end of 2025, further updates on the transaction and its implications for Reliance Power's overall business strategy are anticipated.

Reliance Power Limited (RPL) and Reliance Infrastructure (RInfra) have issued statements asserting that the recent Central Bureau of Investigation (CBI) chargesheet against Anil Ambani and others in a ₹2,796.00 crore bank fraud case will not affect their operations or financial performance. This announcement comes in response to the CBI filing charges alleging fraudulent transactions between Reliance Commercial Finance (RCFL), Reliance Home Finance (RHFL), Yes Bank, and firms connected to former Yes Bank CEO Rana Kapoor's family.

Key Points from the Companies' Statements

• No Impact on Operations: Both Reliance Power and Reliance Infrastructure emphasized that the CBI's actions will not influence their business operations, financial performance, shareholders, employees, or other stakeholders.

• Separate Entities: The companies stressed that they are separate and independent listed entities, and the CBI's actions have no bearing on their day-to-day management, governance, or financial stability.

• Resolution of Related Companies: Both RCFL and RHFL issues have been fully resolved through lender-driven processes led by Bank of Baroda under RBI regulations, following Supreme Court judgments in 2022 and 2023, respectively.

• Historical Context: The alleged transactions under CBI investigation are over 10 years old and pertain to RCFL and RHFL, not Reliance Power or Reliance Infrastructure.

Clarifications on Corporate Governance

The statements also provided clarity on corporate governance matters:

• Anil D. Ambani has never been on the boards of RCFL or RHFL since their inception, according to public records.
• Mr. Ambani stepped down from the boards of Reliance Power and Reliance Infrastructure over 3.5 years ago.

Companies' Focus

Despite the media attention surrounding the CBI actions, both Reliance Power and Reliance Infrastructure affirmed their commitment to their respective business plans and value creation for all stakeholders. The companies, which are part of the Reliance Group, continue to position themselves as leading players in their respective sectors.

Reliance Power's Current Position

The clear and prompt communication from Reliance Power and Reliance Infrastructure aims to reassure investors and stakeholders of their stability and independence from the ongoing investigations into related entities. Both companies' focus remains on their core businesses and maintaining their positions in their respective sectors.