JSW Energy to buy 2 Jaiprakash hydropower units in Himachal for Rs9,700 crore

Sajjan Jindal Group company JSW Energy is acquiring two hydro-electric projects from Jaiprakash Power Ventures in Himachal Pradesh for about Rs9,700 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 Rs9,700 crore," JSW Energy stated in a release.

The acquisition of the 300 MW of Baspa II hydro-electric project and the 1,091 MW Karcham Wangtoo hydro project will make JSW Energy the largest private sector hydro-power generator in the country.

Post-acquisition, the aggregate installed power generation capacity of JSW Energy will go up to 4,531 MW. JSW Energy already produces 3,140MW of power and has another 8,630MW capacity under implementation and development.

The board of directors of Jaiprakash Power has approved the transfer of the Baspa II and 1,091 MW Karcham Wangtoo hydro projects into a separate company -- Himachal Baspa Power company for facilitating the transfer.

For the financial year ended March 2014, the Karcham project had earned a revenue of Rs1,242 crore while the Baspa project Rs320 crore.

"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 added.

"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," JSW Energy CMD Sajjan Jindal said.

Axis Capital and SBI Capital Markets acted as financial advisors for the transaction.