JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has signed a definitive agreement to acquire a 4,696 MW renewable energy platform from O2 Power Pooling Pte. Ltd.
According to JSW Energy, the platform, valued at approximately Rs12,468 crores (around USD 1.47 billion), will significantly boost JSW Energy’s renewable energy capacity. The acquisition, subject to approval by the Competition Commission of India (CCI) and other customary approvals, includes O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd.
O2 Power’s platform includes 2,259 MW of operational capacity, with an additional 1,463 MW under construction and 974 MW in the pipeline. The entire platform is expected to be operational by June 2027.
With a blended average tariff of Rs3.37/KWh and a remaining life of approximately 23 years, the platform spans across seven resource-rich states of India. This acquisition will increase JSW Energy’s total locked-in generation capacity by 23%, from 20,012 MW to 24,708 MW.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed his enthusiasm about the acquisition, stating, “We are thrilled to announce the acquisition of O2 Power’s 4.7 GW renewable energy platform which is JSW Energy’s largest acquisition since inception. This landmark acquisition strengthens our positioning as a leading player in India’s energy sector.”
He added, “These high-quality assets strengthen our operational footprint across key resource-rich states. It gives me a great joy to welcome the experienced management team and employees of O2 power to JSW Energy family. By combining our strengths, I am confident that we will deliver exceptional value to our stakeholders.”
Pritesh Vinay, Director (Finance) and CFO of JSW Energy, highlighted the value of the deal, saying, “The acquisition of O2 Power’s renewable energy platform is significantly value accretive to the shareholders of JSW Energy. This is a very attractive acquisition – both from ‘Build vs Buy’ trade off as well as from a quality and value perspective when compared to all acquisitions in this space over recent times, and is consistent with our long track record of being prudent in capital allocation and focusing on high cash returns projects above our hurdle rate of mid-teen Equity IRR.”
He added, “This gives us an opportunity to leapfrog our growth ambitions. JSW Energy remains focused to pursuing value-accretive opportunities that support our ambitious growth objectives in the power sector.”
The acquired platform has a majority of its capacity secured under long-term power purchase agreements (PPAs) with high-credit-rating off-takers. Additionally, the corporate and industrial (C&I) capacity of the platform stands at 596 MW, bringing JSW Energy’s total C&I capacity to 3,694 MW, including the JSW Group’s C&I capacity.
The transaction was advised by PwC, with legal support from Khaitan & Co and Herbert Smith. KPMG handled financial and tax due diligence, while Wind Guard conducted technical due diligence. (ANI)
