JSW to acquire JSPL’s Chhattisgarh power plant for Rs 6,500 Cr

JSW Energy plans to acquire Jindal Steel & Power s (JSPL) Chhattisgarh power plant for Rs 6,500 crore.
The company has executed documents to acquire from JSPL and other shareholders, 100 per cent stake in Everbest Steel and  Mining Holdings Limited. The board of directors of Jindal Steel and Power Limited and Jindal Power Limited have approved the transfer of the 1,000 MW (4×250 MW) thermal power project located at Village Tamnar, District Raigarh in Chhattisgarh.
“Subject to compliance with the terms and conditions and adjustment provisions contained in the definitive documents, the consideration payable by JSW Energy is linked to an enterprise value of Rs. 4,000 crore plus net currents assets, which would be increased to Rs. 6,500 crore if the I,000 MW power plant is completely secured for fuel and enters into a long term PPA providing certain minimum return threshold,” JSW Energy said issuing a statement.
The  transaction  also  contemplates  payment  of  an  interest  bearing advance of  Rs. 500 crore pursuant to the receipt of approvals from the shareholders of the JSW Energy and JSPL and the CCI.
Post acquisition, the aggregate installed and operational power generation capacity of JSW Energy will enhance to 5,531  MW. This will diversify JSW Energy s  presence towards the Eastern Region of the country and in Chhattisgarh which is rich in coal reserves.
Commenting on the acquisition, Sanjay Sagar, Joint Managing Director and  CEO of JSW Energy, said, “This acquisition demonstrates JSW Energy s  strategy to augment its existing portfolio with superior assets having potential for long term value creation for its stakeholders.