JSW Neo Energy Limited, a subsidiary of JSW Energy Ltd, has entered into a formal agreement to purchase O2 Power, a renewable energy platform founded in partnership with Sweden's EQT Partners and Singapore's Temasek Holdings. The platform is valued at an enterprise valuation of Rs 12,468 crore ($1.47 billion) after adjustments for net current assets.
JSW Energy has made its biggest acquisition till date as announced in a press release.
According to JSW Energy, the 2.25 gigawatt (GW) capacity platform is expected to be operational by June 2025. A presentation by JSW Energy indicated a capital outlay of Rs 13,000-14,000 crore, which would increase the platform's total. Capacity up to 4.6 GW in coming years
In a stock exchange filing, JSW Energy said: “O2 Power is a renewable energy platform with a capacity of 4,696 MW – 2,259 MW will be operational by June 2025, 1,463 MW is currently under construction, and an additional 974 MW is currently under construction. The pipeline, All are scheduled to start by June 2027. The platform has mixed average fares of Rs. 3.37/KWh The remaining 23-year capacity is spread across seven resource-rich states in India.
The acquisition includes the acquisition of O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd, JSW Energy said pending approvals from the Competition Commission of India (CCI) and other standard regulatory approvals for a deal of this magnitude.
Sharad Mahendra, Co-Managing Director and CEO, JSW Energy said, “We are delighted to announce the acquisition of O2 Power's 4.7 GW renewable energy platform, JSW Energy's largest acquisition since inception. This landmark acquisition strengthens our positioning as a leading player in India's energy sector. These high-quality assets strengthen our operational footprint across key resource-rich states. It gives me great pleasure to welcome the experienced management team and employees of O2 Power to the JSW Energy family. I am confident that by combining our strengths, we will deliver exceptional value to our stakeholders.