Sajjan Jindal-promoted JSW Energy will acquire Jaiprakash Power Ventures' 500 MW thermal plant at Bina in Madhya Pradesh at base enterprise value of Rs 2,700 crore.
"The company has agreed to acquire the 500 MW (2X250 MW) thermal power plant located at Bina, district Sagar in Madhya Pradesh from Jaiprakash Power Ventures Ltd," JSW Energy said in BSE filing today.
After JSW Energy announced purchase of Jindal Steel & Power's Chhattisgarh thermal power plant for around Rs 6,500 crore in May, this is the second purchase of a power plant by the company.
JSW Energy envisages an electricity generation capacity of 10,000 MW by 2020.
JSW Energy also said that it has agreed to consideracquisition of 100 per cent equity in Minerals & Energy Swaziland (Pty) Ltd. It has prospecting rights over a coal bearing area admeasuring 8000 hectares in Swaziland.
JSW proposed to acquire 100 per cent share capital of Minerals & Energy Swaziland (Pty) Ltd for a lump sum consideration of not more than USD 1.5 million.
In a separate filing, Jaiprakash Power Ventures said that its board has accepted the recommendations of the committee of directors as well as the audit committee to hive off and transfer of 500 MW Bina thermal power plant as a going concern basis to its subsidiary Bina Power Supply Ltd (BPSL) through the scheme of arrangement approved by the board subject to all requisite regulatory and other approvals.
It further said, the board approved the securities purchase agreement with JSW Energy Ltd "regarding the sale of entire securities...Of BPSL...To JSW subject to satisfaction of conditions precedent including the scheme of arrangement becoming effective and all such regulatory and other approvals as may be required."
The consideration to be received from JSW is linked to a base enterprise value as on September 1, 2015 of Rs 2,700 crore for sale of 100 per securities of BPSL subject to mutually agreed adjustments, it said.
The requisite shareholders approval for the sale of securities shall be obtained, it added.
News Source : Business Standard