Jindal’s JSW Energy to Buy JSPL’s Power Plant
Naveen Jindal’s Jindal Steel and Power Ltd or JSPL is all set to sell its 1,000 MW power plant. The JSPL sells its power plant in Chhattisgarh to company JSW Energy Ltd. JSW is Sajjan Jindal’s company. Sajjan Jindal and Naveen Jindal are brothers. The deal of both companies is valued at Rs. 6,000 crore.
So JSW will set 1,000 Mw power plant in Raigarh. This plant is controlled by younger brother Naveen Jindal. The deal is also involves takeover of Project’s debt. The deal is expected to be finalized on 27th April 2016, Wednesday. The only three people are familiar with the development of the deal.
One of this three people said that, “Both boards are likely to clear the proposal tomorrow along with the quarterly numbers following which a binding agreement will get inked. The valuation is expected to be between Rs 6,000 crore and Rs 6,500 crore.”
In the starting JSW will have to pay Rs 4000-4500 crore. It is also including Bridge loan of Rs 3,000 crore. However the rest of amount will be paid later by JSW to JSPL. The JSW may buy power unit in only March 2018 as per deal.
Both companies JSW and JSPL were signed in agreement in last month. Shareholder’s teams and conditions agreement was penned by few days ago. JSW Energy is growing energy company and it is a part of JSW group.