A consortium led by Abu Dhabi National Energy Co
(TAQA) has agreed to buy two Indian hydroelectric power plants from Jaiprakash
Power Ventures in a deal worth about $1.6bn, TAQA said on Sunday.
The group will spend $616m on equity in the
plants, and in addition take over their non-recourse project debt, bringing the
total enterprise value to around $1.6bn, a TAQA spokesman told Reuters.
State-run TAQA, with 51 percent of the consortium,
will control the operations and management of both plants under the deal. PSP
Investments, one of Canada's largest institutional investors, will own 39
percent and an infrastructure fund run by India's IDFC Alternatives will hold
The two plants, located close to each other in the
northern state of Himachal Pradesh, have a combined generating capacity of
1,391 megawatts, and are near another Indian hydroelectric plant in which TAQA
acquired a stake last year.
Along with a lignite power plant owned by TAQA, the
latest deal will bring TAQA's combined generating capacity in India to 1,741
MW. The deal, which needs regulatory and third-party approvals, is expected to
close in 2014, TAQA said.
Shares in Jaiprakash jumped 12 percent on Friday in
anticipation of the deal; Reuters reported early last month that it was close
to being signed. On Friday, the Indian company said its board would meet on
Saturday to consider recommendations for cutting debt and boosting shareholder
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