New Delhi: JSW Energy Ltd has signed a share-purchase agreement with GMR Energy Ltd to acquire 100% stake in the latter’s subsidiary GMR Kamalanga Energy Ltd, which owns and operates a 1,050 MW thermal power plant in Odisha, JSW Energy informed the stock exchanges on Monday.
The transaction, the discussions of which had started in October, is valued at ₹5,321 crore, subject to working capital and other adjustments, and is expected to be completed in three months, the Sajjan Jindal-led company said.
The deal is yet to receive approvals from the Competition Commission of India (CCI), lenders of GMR Kamalanga and Industrial Development Corporation of Odisha (IDCO), JSW Energy said.
It will also require clearance from power purchase agreement beneficiaries, Haryana – Uttar Haryana Bijli Vitran Nigam Ltd, Dakshin Haryana Bijli Vitran Nigam Ltd and PTC India Ltd.
Following the acquisition, total installed power generation capacity of JSW Energy will increase to 5,609 MW. It will also enhance the company’s presence in the eastern region of the country and diversify its fuel mix and offtake arrangements, JSW Energy said in its statement.
“JSW Energy, as part of its strategy for expansion and consolidation in the power sector, is actively evaluating various strategic assets for acquisition. Accordingly, it has decided to acquire GMR Kamalanga Energy Ltd (GKEL), which owns and operates a 1,050 MW coal-based power plant. Consequent to the acquisition, GKEL will be a 100% subsidiary of the company," JSW Energy said.
GMR Kamalanga’s revenue from operations were at ₹2,195 crore as of 31 March 2019, as against ₹1,990 crore in the previous financial year ended March 2018.