India Grid Trust (BSE:540565) signed a letter of intent to acquire East-North Interconnection Company Limited from Sterlite Power Grid Ventures Limited for an enterprise value INR 10.2 billion on January 28, 2020. The consideration is subject to adjustment and is payable in cash. This acquisition will be funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt. As of March 24, 2020, India Grid Trust completed the acquisition of 49% stake in East-North Interconnection Company Limited from Sterlite Power Grid Ventures Limited. The remaining stake will be acquired shortly after the completion of prescribed statutory formalities by April 2020. The transaction is subject to India Grid Trust unitholders’ approval, execution of definitive agreements and regulatory approvals. Board of the Investment Manager of IndiGrid has approved acquisition of East North Interconnection Company Limited on January 29, 2020. Extra-ordinary General Meeting of India Grid Trust unitholders to be held on February 24, 2020. As of February 24, 2020, India Grid Trust’s shareholders approved the transaction. Sterlite Power Grid Ventures has obtained approval of Long-Term Transmission Customer (LTTC) for transfer of shareholding to IndiGrid. The acquisition is expected to be consummated during Q4 Fiscal year 2020. Upon acquisition of ENICL, IndiGrid’s net debt/AUM will continue to be below 49%. Ashwath Rau, Atreya Bhattacharya and Aditi Gopalakrishnan of AZB & Partners acted as legal advisor to India Grid Trust (BSE:540565), KKR & Co. Inc and Sterlite Investment Managers Limited.