European alternative asset manager EQT and Singapore’s Temasek hold 51% and 49%, respectively, in O2 Power that has a capacity of 4.7GW renewable energy. They both will exit the company, founded by former ReNew Power executives Parag Sharma, Peeyush Mohit, and Rakesh Garg, after the transaction.
This acquisition will help increase the JSW Neo Energy's locked-in, or planned generation capacity by 23%, from the current 20,012 MW to 24,708 MW.
JSW Neo Energy , a wholly-owned subsidiary of JSW Energy Ltd, is set to acquire renewable energy platform O2 Power at an enterprise value of $1.47 billion.
European alternative asset manager EQT and Singapore’s Temasek hold 51% and 49%, respectively, in O2 Power that has a capacity of 4.7 GW renewable energy. They both will exit the company, founded by former ReNew Power executives Parag Sharma, Peeyush Mohit, and Rakesh Garg, after the transaction.
In a statement, JSW Energy said that the transaction entails acquisition of O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd. and is subject to approval of the Competition Commission of India (CCI) and other customary approvals standard to a transaction of this size.
In a separate statement, Parag Sharma, CEO of O2 Power, said: “This marks the beginning of the next phase for O2 Power. We had started with the vision to build a RE platform with a strong portfolio, and have been successful in delivering the targets we had set out with."
"We thank EQT and Temasek for being our strong support during this phase of inception and initial growth. We look forward to working with JSW Neo Energy for the next phase. In the days ahead, as we evolve, it will be our endeavour to continue building value for all our stakeholders, both external and internal, and ensure that we significantly contribute to India's renewable energy goals," he added.
In September, Mint reported that JSW is among the shortlisted bidders to buy O2 Power. The other bidders in the fray were New York-based alternative investment firm Stonepeak, I Squared Capital, and Macquarie Group.
Sharad Mahendra, joint managing director and CEO of JSW Energy, said: “We are thrilled to announce the acquisition of O2 Power’s 4.7 GW renewable energy platform which is 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 a great joy to welcome the experienced management team and employees of O2 power to JSW Energy family."