Agritrade Resources Limited (SEHK:1131) entered into a letter of intent to acquire SKS Power Generation (Chhattisgarh) Limited from SBICAP Trustee Company Ltd. for INR 3 billion on July 27, 2018. Agritrade Resources Limited entered into an agreement to acquire the project on November 12, 2018. Under the terms of the transaction, the total consideration is INR 21.7 billion of which Agritrade Resources Limited will acquire approximately 290 million shares at INR 10.37 per share for the acquisition of the project, INR 17.2 billion represents the assignment amount payable to the lenders and INR 1.5 billion represents the cash margin amount payable to bank guarantees pursuant. Agritrade Resources Limited intends to satisfy the total consideration partly by the internal resources and partly by loan borrowing from an independent third party as project financing. For the year ended March 31, 2018, SKS Power Generation (Chhattisgarh) Limited reported total sales of HKD 257.55 million (INR 2.13 billion) and net loss after income and net loss before income of HKD 560.74 million (INR 4.65 billion).

The deal is subject to certain conditions including SBICAP Trustee Company Ltd. shall have procured the approvals in relation to change in ownership from NPCL, Government of Chhattisgarh, Chhattisgarh State Industrial Development Corporation Limited, relevant competent authorities, shall have submitted a letter of intimation to the Ministry of Coal, Government of India, shall have obtained clearance from the Stock Exchange and shall have received a certified true copy of an order of the National Company Law Tribunal, Mumbai Bench. Agritrade Resources Limited shall have obtained and submitted to the lead bank a certified true copy of the approval from its majority shareholders, shall within 7 days from the execution date, start the process for getting by the Stock Exchange and shall submit the certified true copy of the disclosure made to the Stock Exchange to the Lenders, the Investor shall have submitted to the Lead Bank, a certified true copy of the approval of the board of directors of the investor to purchase the shares from the seller in accordance with the terms of the agreement. As of December 17, 2018, Agritrade Resources Limited received consent from its controlling (majority) shareholders in favor of the transaction and no shareholder's meeting is required now. V-Magnum Opus Strategic Solutions Private Limited acted as transaction advisor for Agritrade Resources Limited. Nishant Singh, Khusnuma Nagwaswalla, Chhavi Jhanji, Anindita Ganguly. Vidya Rao, Priyank Nanavaty, Krupa Desai, Prachi Pandit, Saksham Madan and Shreshth Bhartia of Induslaw LLP and Lawrence Lee, Brian Wong and Stephanie Mak of Baker & McKenzie Hong Kong acted as legal advisors for Agritrade Resources Limited. Amey Pathak, Vivek Rathore, Varun Singh and Sohrab Kharadi of Cyril Amarchand Mangaldas acted as legal advisors for lenders' consortium.