Jaypee sells 2 hydro units to Abu Dhabi firm for Rs 10,500 cr

Jaiprakash Power Ventures Ltd (JPVL) has signed a deal with Abu Dhabi National Energy Company PJSC (TAQA), the Abu Dhabi government’s energy and utilities firm, for selling two hydro-power projects in Himachal Pradesh for Rs 10,500 crore.

The deal, part of the Jaypee Group’s plan to cut Rs 60,000-crore debt, follows months of negotiations. Last year, Executive Chairman Manoj Gaur had said the group planned to cut its debt by Rs 15,000 crore through the sale of assets. JPVL has a debt of Rs 19,000 crore.

TAQA will acquire the 300-Mw Baspa-II and the 1,000-Mw Karcham Wangtoo on the Sutlej in one of the largest foreign direct investments in the power sector. “The enterprise value of the deal is close to Rs 10,500 crore. The equity portion is Rs 4,000 crore,” said a person. This indicates a substantial premium for Jaypee, as the total project cost for the two plants is Rs 8,900 crore, including Rs 2,600 crore of equity.

A spokesperson declined to comment. TAQA’s global spokesperson, too, declined to comment.

Meanwhile, JPVL’s board met on Saturday. The meeting planned to “consider the recommendations of the committee of directors or audit committee, aiming at reduction of debt and unlocking the shareholders’ value”, the company had told BSE in a filing on Friday. TAQA is understood to have formed a consortium of financial sponsors to conclude this transaction. The group included Canadian pension fund PSP Investments and IDFC Alternatives, the private equity arm of infrastructure finance company IDFC.

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Source: Business Standard



Executive at India Electron Exchange

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