India’s JSW Energy has agreed to buy clean energy projects from O2 Power Pooling for about US$1.5 billion ($2.04 billion) in an all-cash deal, according to a stock exchange filing Friday.
The acquisition will allow JSW, controlled by steel-to-cement tycoon Sajjan Jindal, to add a portfolio of 4.7 gigawatts of renewable power projects, the company said in the statement.
O2 Power, formed in 2020, is a joint venture between Singapore’s Temasek Holdings and Sweden’s EQT Infrastructure.
The deal, which will help JSW achieve its target to reach 20 gigawatts of generation capacity by 2030, reflects the confidence of the Indian investors in the sector.
Indian Prime Minister Narendra Modi is seeking to more than double the nation’s clean power capacity by the end of the decade, a goal that’s been championed by foreign investors and local tycoons, including JSW’s Jindal.
As part of the transaction, JSW Energy will acquire 100% interest in O2 Power Midco Holdings and O2 Energy SG, as well as their subsidiaries.
See also: Asia Enterprises to take 28.64% stake in metals logistics operator for $8.86 million
The acquisition is expected to be completed by May 26, after receiving regulatory approvals, including from project lenders and India’s anti-trust watchdog, the statement said.
A capital expenditure of as much as 140 billion rupees ($2.23 billion) will be made into unfinished projects, in addition to the deal value, JSW said in a separate presentation to investors.
O2 Power’s projects are spread across seven Indian states and will be able to sell power at a blended price of 3.37 rupees a kilowatt hour, JSW said.
