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JSW Energy to buy Mytrah Energy assets for Rs 10,530 crore

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Mumbai (Maharashtra) | August 10, 2022 11:28:31 AM IST
JSW Neo Energy, a wholly owned subsidiary of JSW Energy, said on Wednesday it has agreed to acquire a portfolio of 1,753 MW of renewable energy generation capacity from Mytrah Energy (India) for Rs 10,530 crore.

Necessary definitive agreements have been signed between the parties. The transaction is subject to the approval of the Competition Commission of India (CCI) and other customary approvals standard to a transaction of this size, JSW Energy said in a statement.

The transaction values the Mytrah Energy portfolio at an Enterprise Valuation of approximately Rs 10,530 crore, after adjusting for net current assets, it said.

The Mytrah Portfolio consists of 10 Wind SPVs with a generation capacity of 1,331 MW and 7 Solar SPVs with a generation capacity of 422 MW (487 MWp DC), operating primarily in the southern, western and central parts of India. The assets have a proven operational track record and long-term PPA with an average remaining life of 18 years.

This is the largest acquisition made by JSW Energy since inception and will leapfrog the company's current operational generation capacity by over 35 per cent - from 4,784 MW to 6,537 MW.

Moreover, with about 2,500 MW of under-construction wind and hydro projects which are likely to be commissioned in phases over the next 18-24 months, JSW Energy platform capacity gets enhanced to 9.1 GW - where the share of renewables increases to 65 per cent. Further, this is likely to help the company in achieving its renewable-led capacity growth target of 10 GW by FY25, well ahead of timelines.

"We are excited to acquire Mytrah's 1.75 GW of renewable energy portfolio which is value accretive to our shareholders on day one. This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being a leading player in India's Energy Transition," Prashant Jain, Joint Managing Director and CEO of JSW Energy, said in a statement.

"This acquisition further strengthens and diversifies our operating footprint across various key resource rich states. We also believe that by leveraging our strong industry, operating and financing expertise, we would be able to significantly improve the operating performance of this entire portfolio, which will ultimately create tremendous value to our shareholders," Jain said.

Pritesh Vinay, Director (Finance) and CFO of JSW Energy, said: "The acquisition of Mytrah's portfolio by JSW Energy is significantly value accretive and consistent with our long track record of being prudent in capital allocation and focusing on high cash returns."

This is a very attractive acquisition - both from 'Build vs Buy' trade off as well as relative value when compared to all acquisitions in this space in recent times. We have a multipronged asset optimisation, performance improvement and capital structure optimisation plan over the next 12-24 months -which will drive significant value creation over the life of the assets, Vinay said.

"The balance sheet headroom even after consummating this large acquisition will give us the leeway to continue to pursue our growth ambitions," he added.

JSW Energy has set an ambitious target for a 50 per cent reduction in its carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy. The Company has set a target to reach 20 GW capacity by 2030, with the share of renewable energy increasing to 85 per cent.

JSW Neo Energy limited, a wholly owned subsidiary of JSW Energy Limited, is a vehicle formed as a part of re-organisation of business to own all the renewable/green and new energy businesses. (ANI)

 
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