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.
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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 around ₹40 billion (US$590 million), which will increase to ₹65 billion if the power plant meets certain pre-agreed conditions regarding fuel security and power offtake arrangements. The deal is expected to close before June 2018.
Cyril Amarchand Mangaldas acted for JSW Energy. The team was led by infrastructure and projects partners L Viswanathan (Mumbai) and Ramanuj Kumar (New Delhi), 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.
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