JSW Energy to buy 2 hydro projects of JP Power for Rs 9,700 crore
New Delhi: JSW Energy will acquire two hydro-electric projects of Jaiprakash Power Ventures in Himachal Pradesh for about Rs 9,700 crore.
"JSW Energy has agreed to acquire from Jaiprakash Power Ventures and other shareholders, 100 per cent stake in Himachal Baspa Power company for a base enterprise value of Rs 9,700 crore," JSW Energy said in a statement.
The board of directors of Jaiprakash Power has approved the transfer of 300 MW of Baspa II hydro-electric project and 1,091 MW Karcham Wangtoo hydro project into a separate company — Himachal Baspa Power company, it added.
In the fiscal ended March 2014, the Karcham project had earned a revenue of Rs 1,242 crore while the Baspa project Rs 320 crore.
The acquisition will make JSW Energy as the largest private sector hydro-power generator in the country.
Post-acquisition, the aggregate installed power generation capacity of JSW Energy will enhance to 4,531 MW.
"The acquisition will yield immediate cash flow and is expected to enhance JSW Energy's consolidated profitability and returns and create significant synergies," the statement said.
Commenting on the acquisition, JSW Energy CMD Sajjan Jindal said: "Our strategy is to increase capacity manifold and create synergies through a mix of organic and inorganic opportunities, supported by excellence in operations to accelerate the growth in shareholder value."
Axis Capital and SBI Capital Markets acted as financial advisors for the transaction.