Sajjan Jindal-led JSW Energy is likely to acquire Naveen Jindal’s 1,000 MW power plant at Raigarh as the younger sibling’s Jindal Steel and Power (JSPl) is trying to monetise assets to pare debt.
Negotiations on acquiring Jindal Power ltd’s (JPl) 1,000 MW plant at Chhattisgarh are in final stages and the price tag could be in the range of Rs5,500-5,800 crore. The formal announcement of the deal may be made in the last week of this month or in April, people in know of the developments said.
JPl, a subsidiary of JSPl, has a 4x250 MW plant in Raigarh and a 2,400 MW (4X600 MW) thermal power plant in Tamnar also in Chhattisgarh.
For 2014-15, JSPl had a consolidated net debt of Rs42,929 crore against a net debt of Rs35,419 crore in 2013-14.
When contacted, a JSPl spokesperson said: “As per company policy we do not respond to speculations. As part of monetisation plans already advised, JSPl is looking at various options diligently to strengthen our balance sheets.”
last week, JPl announced that it has signed an agreement to divest 4.12 per cent stake in Indian Energy Exchange for an undisclosed amount, which will be realised in this fiscal ending March 31, 2016.
Declining steel prices steel coupled with cheap imports have impacted margins of domestic steel producers including JSPl, analysts said, adding that steel sector globally has been impacted due to low demand from China and it’s over capacity.
Domestic industry has been impacted in terms low sales realisation due to cheap imports affecting financial results over the last 4 quarters, they added.