JSW Energy on August 10 said that its arm JSW Neo Energy has agreed to buy a portfolio of 1753 mega watt renewable energy generation capacity from Mytrah Energy India Pvt Ltd for Rs 10,530 crore.
Moneycontrol was the first to report that Sajjan Jindal led JSW group had signed an exclusivity agreement with Hyderabad based Mytrah Energy to buy the latter’s wind and solar assets.
This is the largest acquisition by JSW Energy since inception, which comprises 17 special purpose vehicles and 1 ancillary SPV. The transaction is subject to approval of the Competition Commission of India (CCI) and other customary approvals standard to a transaction of this size, the company said in a release.
With this acquisition, JSW Energy's current operational generation capacity will go up by over 35 percent from 4,784 MW to 6,537 MW. Currently about 2,500 MW of under-construction wind and hydro projects which are likely to be commissioned in phases over the next 18-24 months, JSW Energy platform capacity gets enhanced to 9.1 GW – where the share of renewables increases to 65 percent, JSW said in a stock exchange filing. Further, this is likely to help the company in achieving its renewable-led capacity growth target of 10 GW by FY25, well ahead of timelines, the firm added.
The Mytrah Portfolio consists of 10 Wind SPVs with a generation capacity of 1,331 MW and 7 Solar SPVs with a generation capacity of 422 MW, operating primarily in the southern, western and central parts of India. The assets have a proven operational track record and long-term PPA with an average remaining life of 18 years, the firm said
“We are excited to acquire Mytrah’s 1.75 GW of renewable energy portfolio which is value accretive to our shareholders on day one. This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being a leading player in India’s Energy Transition. This acquisition further strengthens and diversifies our operating footprint across various key resource rich states. We also believe that by leveraging our strong industry, operating and financing expertise, we would be able to significantly improve the operating performance of this entire portfolio, which will ultimately create tremendous value to our shareholders" said Prashant Jain, Joint Managing Director and CEO of JSW Energy .
KPMG India Services LLP were the transaction advisor to the company, while Khaitan & Co. were the legal advisors and PricewaterhouseCoopers Services LLP carried out financial and tax due diligence. Barclays was handling the sale process.
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