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Sajjan Jindal-owned JSW Energy has decided to acquire 1,000 MW unit of Jindal Power in a deal that involves the former taking over debt of ₹4,000 crore along with the asset. The complicated deal that involves JSW Group company investments is expected by the third week of this month, sources said.
In response to a BusinessLine query, JSW Energy spokesperson said: “As part of our growth strategy, the company looks to evaluate various opportunities, both organically and inorganically. However, as a policy we would not like to comment on speculation since it would be premature to do so till any of the deals being evaluated gets fructified.”
The acquisition will help JSW Energy, which currently has 3,140 MW of thermal and 1,391 MW of hydel capacity, to increase its overall production to 5,531 MW and inch closer the third largest power producer Reliance Power (6,000 MW). The top two private power producers are Adani Power (10,480 MW) and Tata Power (9,130 MW).
JSW Energy, which had a net debt of ₹8,615 crore as of December quarter, was also considering two other companies — Monnet Power and Jaiprakash Power Ventures — for possible acquisition but zeroed in on Jindal Power, which is owned by the promoter’s younger brother Naveen Jindal, sources said.
On July 9, JSW signed a pact with Monnet Ispat and Energy for due diligence for acquisition of its subsidiary Monnet Power and followed it with a binding agreement with Jaiprakash Power Ventures for its 500 MW plant in Madhya Pradesh. The sale of 1,000-MW thermal power plant located in Chhattisgarh would help the Jindal Group reduce its interest outgo and pare overall debt of ₹32,638 crore.
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