India’s Jindal Steel & Power has agreed to transfer a 1000 MW (4×250 MW) coal-fired thermal power plant in Chhattisgarh, owned by its subsidiary, Jindal Power (JPL), into a separate special purpose acquisition company, which JSW Energy will acquire.
The transfer, using the special purpose company, Everbest Steel and Mining Holdings, is being made through a scheme of arrangement under sections 391-394 of the Companies Act 1956. Once the scheme is made effective, JSW Energy will acquire 100% of Everbest and the power plant.
The deal is valued at about ₹40 billion (US$600 million), which will increase to ₹65 billion if the power plant meets certain pre-agreed conditions regarding fuel security and power offtake arrangements.
The transaction documents were signed on 3 May and the deal is expected to close before June 2018. Cyril Amarchand Mangaldas acted for JSW Energy on the deal. The team was led by infrastructure and projects partners L Viswanathan (Mumbai) and Ramanuj Kumar (New Delhi), with competition law partner Nisha Uberoi (Mumbai) advising on competition law aspects. Capital markets partner Gaurav Gupte (Mumbai) handled listing company-related aspects.
Jindal was advised by its in-house lawyers.