Jaiprakash deal for 500-mw Bina plant gets CCI nod

By: |
New Delhi | September 19, 2016 5:40 PM

The Competition Commission has approved Sajjan Jindal-promoted JSW Energy's purchase of the 500-mw Bina thermal power plant from Jaiprakash Power Ventures.

Under the deal, announced in July, JSW Energy will buy 100 per cent stake in the special purpose vehicle (SPV) -- Bina Power Supply Ltd (BPSL) -- to which 500 mw power plant is to be transferred. (Source: Reuters)Under the deal, announced in July, JSW Energy will buy 100 per cent stake in the special purpose vehicle (SPV) — Bina Power Supply Ltd (BPSL) — to which 500 mw power plant is to be transferred. (Source: Reuters)

The Competition Commission has approved Sajjan Jindal-promoted JSW Energy’s purchase of the 500-mw Bina thermal power plant from Jaiprakash Power Ventures.

Under the deal, announced in July, JSW Energy will buy 100 per cent stake in the special purpose vehicle (SPV) — Bina Power Supply Ltd (BPSL) — to which 500 mw power plant is to be transferred.

The plant, which has two units of 250 mw generation capacity each, is located at Bina in Madhya Pradesh.

The Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors, has approved the proposed acquisition, as per latest information available on the regulator’s website.

In July, JSW Energy informed BSE that it has agreed to acquire 500 mw (2X250 MW) thermal power plant located at Bina.

At that point, Jaiprakash Power Ventures had said its board has accepted the recommendations of the committee of directors as well as the audit committee to hive off and transfer of 500 mw Bina thermal power plant as a going concern basis to BPSL, subject to all requisite regulatory and other approvals.

The consideration to be received from JSW is linked to a base enterprise value as on September 1, 2015, of Rs 2,700 crore for sale of 100 per cent of BPSL, subject to mutually agreed adjustments, it had said.

JSW Energy is into power generation, trading and transmission, among others. Jaiprakash Power Ventures is part of the diversified Jaypee Group.

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