JSW Neo Energy To Acquire 4.7 GW RE Platform O2 Power

SW Energy on Friday said its arm JSW Neo Energy Ltd (JSW Neo) will acquire 4,696 MW renewable energy platform for an enterprise value of Rs 12,468 crore from O2 Power Pooling Pte Ltd (O2 Power).

The transaction entails the 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 approval standards for a transaction of this size, a company statement said.

According to the statement, JSW Neo Energy (JSW Neo), a wholly owned subsidiary of JSW Energy, has signed a definitive agreement to acquire a 4,696 MW renewable energy (RE) platform from O2 Power, a platform jointly established by EQT Infrastructure & Temasek.

It stated that the transaction has an enterprise valuation of about Rs 12,468 crore (USD 1.47 billion) after adjusting for net current assets.

O2 Power is a renewable energy platform with a capacity of 4,696 MW -- where 2,259 MW will be operational by June 2025, 1,463 MW is currently under construction, and an additional 974 MW are in the pipeline -- all scheduled for commissioning by June 2027.

The platform has a blended average tariff of Rs 3.37/KWh with remaining life of 23 years.

The capacities are spread across seven resource-rich states of the country. This acquisition will leapfrog the company's locked-in generation capacity by 23 per cent, from 20,012 MW to 24,708 MW.

"This landmark acquisition strengthens our positioning as a leading player in India's energy sector," JSW Energy Joint Managing Director and CEO Sharad Mahendra said in the statement.

Pritesh Vinay, Director (Finance) and CFO of JSW Energy, said in the statement, "The acquisition of O2 Power's renewable energy platform is significantly value accretive to the shareholders of JSW Energy." PTI KKS