AdaniConneX Pvt Ltd, a joint venture between Adani Enterprises Ltd and EdgeConneX, has completed the acquisition of 100% stake in Vizag Mega Data Center Park Ltd (VMDCPL) for ₹1,085.51 crore.
AdaniConneX had signed a share purchase agreement with VMDCPL and Adani Infra (India) Ltd on November 5 to acquire the entire shareholding in the target company. The consideration was paid in cash on November 6.
Acquisition to support infrastructure development
The acquisition is aimed at setting up infrastructure facilities. VMDCPL, incorporated in India, is engaged in infrastructure development activities.
Although the target company has not yet commenced commercial operations, it owns a sizeable land parcel and has secured key licences required to undertake infrastructure development.
These assets and approvals are expected to provide AdaniConneX with a head start in developing the proposed facilities.
Transaction at arm’s length
AdaniConneX’s acquisition is not a related-party transaction for Adani Enterprises under the provisions of the SEBI Listing Obligations and Disclosure Requirements regulations, according to the disclosure.
However, the target company is directly or indirectly controlled by the promoter or promoter group of Adani Enterprises. The transaction has been undertaken on an arm’s-length basis.
VMDCPL has an authorised and paid-up share capital of ₹1 lakh.