 "JSW Energy inks deal to acquire O2 Power at $1.47 bn enterprise value")
Sajjan Jindal-promoted JSW Energy on Friday announced it has signed an agreement to acquire O2 Power’s green energy platform in a $1.47-billion enterprise value deal. This is JSW Energy’s biggest acquisition ever.
In a media statement, JSW Energy said its wholly owned subsidiary JSW Neo Energy will acquire the platform jointly established by EQT Infrastructure & Temasek.
The transaction values the platform at around Rs 12,468 crore ($ 1.47 billion), after adjusting for net current assets, said JSW Energy. Around 2.25 gigawatts (Gw) of capacity is to be operational by June 2025.
According to a JSW Energy presentation, there would be a further capital expenditure of Rs 13,000-14,000 crore, taking the platform’s full capacity to 4.6 Gw in the next few years.
EQT Infrastructure and Temasek, in a statement, said, “The transaction marks a significant milestone for EQT in Asia Pacific, as O2 Power was EQT’s first infrastructure investment in the region. And, it is now the firm’s first infrastructure exit.”
“The transaction entails acquisition of O2 Power Midco Holdings Pte. Ltd and O2 Energy SG Pte. Ltd and is subject to approval of the Competition Commission of India (CCI) and other customary approvals standard to a transaction of this size,” the statement said.
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O2 Power is a renewable energy platform with 2,259 Mw of capacity to be operational by June 2025.
About 1,463 Mw is currently under construction, and an additional 974 Mw is in the pipeline, all scheduled for commissioning by June 2027.
The capacities are spread across seven states in India.
Highlighting the revenue potential, JSW Energy said the platform has a blended average tariff of Rs 3.37/KWh with remaining life of around 23 years.
JSW Energy said the latest acquisition will increase the company’s locked-in generation capacity to 24,708 Mw, from the current 20,012 Mw. Locked-in capacity refers to a mix of installed and other capacities which are at different stages of development.
At present, JSW Energy has 7,740 Mw of installed capacity as of September 2024.
Further, the commercial and industrial (C&I) capacity of the platform stands at 596 Mw. Post acquisition, JSW Energy’s total C&I capacity will be 3,694 Mw.
Sharad Mahendra, joint managing director (joint MD) and chief executive officer (CEO), JSW Energy, said: “This landmark acquisition strengthens our positioning as the leading player in India’s energy sector.”
Pritesh Vinay, director-finance and chief financial officer (CFO), JSW Energy, said: “This is a very attractive acquisition – both from ‘build versus buy’ trade off as well as from a quality and value perspective when compared to all acquisitions in this space during recent times.” He added, “JSW Energy remains focused on pursuing value-accretive opportunities that support our ambitious growth objectives in the power sector.”
PWC was the transaction advisor to the company, while Khaitan & Co and Herbert Smith were the legal advisors.
KPMG carried out the financial and tax due diligence and Wind Guard conducted the technical due diligence.
JSW Energy appoints Feby Koshy Executive VP, Head of Thermal
JSW Energy on Friday announced that its board has approved appointment of Feby Koshy as the executive vice-president - head of thermal. His appointment is effective from December 30, JSW Energy said in an exchange filing.
The board has approved his name on the recommendation of the compensation & nomination and remuneration committee for the post of executive vice president - head of thermal, a senior management personnel of the company, it said. Koshy comes with over 32 years of experience in the power sector.
(With inputs from PTI)