Shares of Jaiprakash Power Ventures today slumped over 15 per cent as Abu Dhabi National Energy Company (TAQA) led consortium will acquire the company's two hydroelectric power plants for about Rs 10,000 crore (USD 1.6 billion).
The company's stock tanked 15.51 per cent to settle at Rs 14 on the BSE. In intra-day trade, the scrip slumped 17.32 per cent to Rs 13.70.
At the NSE, Jaiprakash Power's stock tumbled 15.41 per cent to close at Rs 14.
TAQA said yesterday through a consortium it will acquire Jaiprakash Power Ventures' two hydro-electric power plant, Baspa Stage II and Karcham Wangtoo, having 1,391 MW capacity.
"The equity invested by the consortium in the acquisition of the two hydroelectric plants will amount to approximately Rs 3,820 crore (USD 616 million, based on March 1, 2014 foreign exchange rate), of which 51 per cent is from TAQA.
"The consortium will also acquire the assets' non-recourse project debt," said TAQA, which is the brand name of Abu Dhabi National Energy Company.
TAQA holds 51 per cent stake in the consortium and will have control of operations and management of both the plants under the proposed deal, it said.
The acquisition is expected to close in 2014 and is subject to regulatory and third party approvals, TAQA said.
On Friday, shares of Jaiprakash Power Ventures' had shot up 12.26 per cent to close at Rs 16.57 a piece on the BSE after the company announced that its Board will meet on Saturday to consider ways to reduce debt and unlock shareholders' value.
