Jaiprakash Power Ventures (JPVL) has signed a definitive agreement with JSW Energy for sale of the securities in Himachal Baspa Power Company (HBPCL). The board of directors of the company had approved the transfer of businesses in relation to two of the company’s operating power plants namely, 300 MW Baspa-II Hydro-Electric Plant (commissioned in 2003) and 1091 MW Karcham Wangtoo Hydro-Electric Plant (commissioned in 2011) (both located in Himachal Pradesh) on a going concern basis to Himachal Baspa Power Company, a subsidiary pursuant to the scheme of arrangement to be sanctioned under Companies Act, 1956 and subject to all approvals, as may be required.
On the effectiveness of the scheme of arrangement, HBPCL will own 300 MW Baspa Stage II and 1,091 MW Karcham Wangtoo Hydro Power Plants in the state of Himachal Pradesh prior to the said sale. The value of consideration to be received from JSW Energy is linked to a base enterprise value of approximately Rs 9,700 crore for the two power projects subject to mutually agreed adjustments.
SBI Capital Markets acted as advisors to the transaction for JPVL, Bansi S Mehta & Company as tax advisors, Vaish Associates as company’s legal advisors and Sobhagya Capital Options as Independent Merchant Bankers.
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