Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

JSW Energy (JSW), signed a share purchase agreement (spa) on Monday with GMR Energy (GEL), to acquire the latter’s subsidiary GMR Kamalanga Energy (GKEL).


The deal, which is valued at up to Rs 53.21bn ($745mn), is likely to help the company generate EBITDA of up to Rs 1.05bn by the end of 2021.


JSW’s installed power generation capacity will increase to 5,609mw after the acquisition while increasing its geographical presence in Eastern India and expanding its fuel mix and offtake arrangements.


GKEL owns and operates a 1050mw, coal-based thermal power plant in Dhenkanal, Odisha with operations’ revenue of Rs 2.19bn as of March 31, 2019.


JSW, which is a part of the $14bn steel and infrastructure conglomerate JSW Group, has been actively appraising various strategic assets for acquisition as part of its expansion strategy and consolidation in the power sector. Consequently, the company agreed to acquire GEL’s subsidiary, GKEL.


The acquisition will be completed 90 days after the execution date of the share purchase agreement subject to fulfillment of conditions precedent set out in the spa.


(US$1= Rs 71.38 as on February 17, 2020)


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