JSW Neo Energy Limited, a subsidiary of JSW Energy Limited, has decided to purchase renewable energy platform O2 Power. For this, an agreement has been signed between the two companies. The O2 Power platform has been set up by Swedish asset manager EQT Partners and Singaporean entity Temasek Holdings. After adjusting the net current assets, the transaction value of this platform is Rs 12,468 crore ($1.47 billion).
“O2 Power is a renewable energy platform with a capacity of 4,696 MW, of which 2,259 MW will be operational by 2025,” JSW Energy said in an exchange filing. Additionally, 1,463 MW is currently under construction and talks are underway for an additional 974 MW. All projects are likely to be operational by June 2027. The blended average tariff of this platform is Rs 3.37/kWh. With this acquisition, the company’s locked-in generation capacity will increase by 23% from 20,012 MW to 24,708 MW.
Sharad Mahendra, CEO and Joint Managing Director, JSW Energy, said, ‘We are extremely pleased to announce the acquisition of O2 Power’s 4.7 GW renewable energy platform, which is JSW Energy’s largest acquisition to date. This acquisition will strengthen our position as a key player in India’s energy sector. These high quality assets will be helpful in expanding our operational reach in key states.
According to JSW Energy, this transaction requires the acquisition of O2 Power Medico Holdings Pvt Ltd and O2 Energy SG Pvt Ltd and will also require approval from the Competition Commission of India (CCI). On December 27, JSW Energy shares closed at Rs 629.85 on the Bombay Stock Exchange (BSE), down 1%. The market capital of this stock is Rs 1.09 lakh crore. Its 52 week low is Rs 404 and 52 week high is Rs 804.9.
