New Delhi: JSW Energy has terminated its plan to acquire GMR Kamalanga Energy five months after announcing the deal, citing uncertainties in the wake of COVID-19 pandemic.
The Sajjan Jindal-backed power utility had signed a share purchase agreement to acquire GMR Kamalanga Energy, which owns and operates a 1,050 MW (3×350 MW) thermal power plant in Odisha, for Rs 5,321 crore in February.
“The long stop date for the proposed acquisition of 100 per cent stake in GMR Kamalanga Energy from GMR Energy has elapsed. Given the continued uncertainty due to COVID-19 pandemic, both parties have mutually agreed to terminate the transaction,” JSW notified the bourses on Friday.
In May also, the sale of GMR Energy’s entire stake in GMR Kamalanga Energy Ltd to JSW Energy was put on hold due to COVID-19 outbreak. The deal would have helped GMR pare debt and added capacity to JSW’s portfolio.
In February, JSW Energy had signed a share purchase agreement to acquire 100 per cent of GMR Kamalanga Energy, which owns and operates a 1,050 MW (3×350 MW) thermal power plant in Odisha, for Rs 5,321 crore (subject to working capital and other adjustments).
GMR Kamalanga operates a 1,050-MW thermal power plant in Odisha. The acquisition was meant to be an all-cash deal and included three plants with 350 MW capacity each, located in Dhenkanal district.