JSW to acquire JSPL´s unit for Rs.6,500 cr

JSW has announced its plans to acquire Jindal Steel & Power´s (JSPL) Chhattisgarh power plant for Rs.6,500 crore. The Naveen Jindal-promoted JSPL has been looking to sell its assets as part of monetisation plans to generate cash flows. The Raipur unit of 1000 MW will be transferred by creation of a special purpose vehicle (SPV), Everbest Steel & Mining Holding Ltd. JSPL said that in order to streamline cash flows of the group and create SPV for amenable monetisation by way of disinvestment, the board of Jindal Power, a subsidiary of JSPL, has forced a committee of directors, called the Restructuring Committee, to explore and evaluate various restructuring options available including a scheme of arrangement.The company said final valuation may vary based upon achievement of power purchase agreements subject to a minimum of Rs.4,000 crore plus the value of net current assets.