NEW DELHI: JSW Neo Energy, a wholly-owned subsidiary of JSW Energy, has announced the signing of a definitive agreement to acquire 4,696 MW renewable energy platform from O2 Power Pooling Pte. Ltd, a joint venture between EQT Infrastructure and Temasek.
The transaction involves acquisition of O2 Power Midco Holdings Pte. Ltd and O2 Energy SG Pte. Ltd and is subject to approval from the Competition Commission of India and other customary regulatory clearances. The transaction values the platform at an enterprise valuation of nearly Rs 12,468 crore ($ 1.47 bn), after adjusting for net current assets.
“This acquisition strengthens our positioning as a leading player in India’s energy sector,” said Sharad Mahendra, joint MD and CEO of JSW Energy. O2 Power is a renewable energy platform with a capacity of 4,696 MW – where 2,259 MW will be operational by June 2025, 1,463 MW is currently under construction, and an additional 974 MW are in the pipeline, all scheduled for commissioning by June 2027.
The platform has a blended average tariff of Rs 3.37/KWh with remaining life of 23 years. The capacities are spread across seven resource-rich states of India. This acquisition will leapfrog the company’s locked-in generation capacity by 23%, from 20,012MW to 24,708MW.
“This is an attractive acquisition – both from ‘Build vs Buy’ trade off as well as from a quality and value perspective when compared to all acquisitions in this space over recent times, and is consistent with our long track record of being prudent in capital allocation and focusing on high cash returns projects above our hurdle rate of mid-teen Equity IRR,” said Pritesh Vinay, director (finance) and CFO of JSW Energy.
UltraTech buys 8.69% stake in Star Cement
The country’s largest cement manufacturer Ultratech has acquired 8.69% stake in Star Cement for `851 crore. Star Cement, which has a strong presence in North-Eastern India, has a production capacity of about 5.7 million tonne per annum (MTPA).
The company has plans to expand its capacity to 9.7 MTPA by 2025-26 and 12 MTPA by 2027. “Some promoter and promoter group entities of Star Cement Limited, having its registered office at Village Lumshnong, Dist.: East Jaintia Hills, Khaliehriat, Meghalaya – 793210 propose to sell their equity holding in Star Cement and have approached the company for the same,” said Ultratech in an exchange filing on Friday.