India's Adani Power to buy DB Power for $879 million

BENGALURU (Reuters) -Adani Power Ltd said on Friday it will buy thermal power plant operator DB Power for an enterprise value of 70.17 billion rupees ($879.14 million) as India's largest private thermal power producer looks to expand operations.

DB Power owns and operates a thermal power plant in the central Indian state of Chhattisgarh and the deal will help Adani expand its operations in the state.

Adani Power is a unit of billionaire and Asia's richest person Gautam Adani's conglomerate Adani Group, which has businesses ranging from cement to cooking oil.

DB Power has long- and medium-term power purchase agreements for 923.5 megawatt of its capacity, backed by fuel supply agreements with Coal India Ltd and has been operating its facilities profitably, Adani Power said.

Adani Power has an installed capacity of 12,450 MW and its power projects are spread across the Indian states of Gujarat, Maharashtra, Rajasthan, Karnataka and Chhattisgarh, according to its website.

($1 = 79.8170 Indian rupees)

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Devika Syamnath and Shounak Dasgupta)