JSW Neo Energy, a wholly owned subsidiary of JSW Energy, has signed a definitive agreement to acquire a 4,696 MW (4.7 GW) renewable energy platform from O2 Power Pooling Pte, jointly owned by Swedish fund EQT Infrastructure and Singapore’s sovereign fund Temasek, for ₹12,468 crore.
The transaction entails the acquisition of O2 Power Midco Holdings Pte and O2 Energy SG Pte and is subject to the Competition Commission of India approval and other customary approval standards for a transaction of this size, said the company.
O2 Power is a renewable energy platform with a capacity of 4,696 MW – where 2,259 MW will be operational by next June, 1,463 MW is currently under construction and an additional 974 MW is planned for the pipeline. All projects are scheduled to be commissioned by June 2027.
The platform has a blended average tariff of ₹3.37/KWh with remaining life of 23 years. The capacities are spread across seven resource-rich States of India. The acquisition will leapfrog the company’s locked-in generation capacity by 23 per cent from 20,012 MW to 24,708 MW.
Sharad Mahendra, Joint Managing Director and CEO, JSW Energy said the acquisition of the O2 Power renewable energy platform is the company’s largest acquisition since its inception and positions it as a leading player in India’s energy sector.
These high-quality assets strengthens operational footprint across key resource-rich States, he said.
Pritesh Vinay, Director (Finance) and CFO, JSW Energy said: “The acquisition is significant value accretive to shareholders of the company and attractive both in terms of ‘Build vs Buy’ and quality and value perspective.
It is consistent with JSW Energy’s track record of being prudent in capital allocation and focusing on high cash returns projects above mid-teen equity IRR, he said.
The platform boasts a majority of the capacity tied up under long-term power purchase agreements with quality off-takers with high credit ratings.
Further, the C&I (commercial and industrial) capacity of the platform stands at 596 MW which takes the company’s total captive capacity to 3,694 MW (including JSW Group C&I capacity of 2,653 MW).
PWC was the transaction advisor to the company, while Khaitan & Co and Herbert Smith were the legal advisors, KPMG carried out financial and tax due diligence and Wind Guard carried out the technical due diligence.
SHARE
Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppReddit
Published on December 27, 2024
https://www.thehindubusinessline.com/companies/jsw-neo-energy-acquires-47-gw-re-platform-from-o2-power-pooling-for-12468-crore/article69033878.ece
