Reliance Power all set to become India’s largest private hydropower supplier.
Indian business giant Reliance Power Ltd is all set to completely buy over Jaiprakash Power Ventures Ltd’s entire hydropower business. The announcement which came on Monday July 28, 2014 will entail that Reliance Power will become the largest private hydropower provider in India.
Head honcho Anil Ambani hasn’t revealed any financial details of the deal as of yet, but the media estimates that Jaiprakash’s entire hydropower wing is pegged at around Rs. 120 billion ($ 2 billion).
Ambani’s Reliance group is the parent company of Reliance GreenGen Ltd that has signed an exclusive Memorandum of Understanding (MOU) with Jaiprakash to buy three power plants.
Jaiprakash’s acquisition by Ambani comes after the former’s failed attempt to sell off two plants to an Abu Dhabi-led group for a reported $1.6 billion. All the three plants possess a combined capacity of around 1,800 megawatts.
Following the acquisition announcement at 2:02 P.M, Japiprakash Power’s shares went up by 4.2 percent and Reliance’s were up by 2.8 percent.
The take over will prove beneficial for the Reliance empire that already has mammoth stakes in technology, financial services and media. Reliance in a statement said that the plants will add to the 5,000 megawatts of hydropower that the company is already developing.
On the other hand, for Jaiprakash, the deal’s monetary proceeds will help the company to pay off its debts.
Photo Credits: Reuters