JSW Energy inks pacts with Monnet for acquisition of power arm.

JSW Energy has entered into a non-binding pact with Monnet Ispat & Energy Ltd (MIEL) for a possible acquisition of its power arm, which is setting up a 1,050 MW thermal power plant in Odisha.

'We have entered into a non-binding agreement with Monnet Ispat for due diligence for acquiring their power arm MPCL. Due diligence will take at least forty to forty-five days and based on the outcome, the decision will be taken,' Joint MD & CEO, JSW Energy, Sanjay Sagar told PT ..

On being asked about possible valuation of the company, Sagar said it will be done only after due diligence.

Monnet Ispat, which has been in talks with potential buyers for selling its power arm Monnet Power Company Limited (MPCL) with substantial liabilities, could not be reached out in this connection.

'The company has signed a non-binding Memorandum of Understanding (MOU) with MIEL and MPCL for initiating a due diligence process for the possible acquisition of a majority stake in MPCL, which is setting up a 1,050 MW (2x525 MW) coal fired thermal power plant located at Malibrahmani, Angul, Odisha,' JSW Energy, meanwhile, said in a BSE filing.

In a separate filing, Monnet Ispat also said, 'The company has signed non-binding memorandum of understanding (MoU) with JSW Energy Ltd for entering into discussion to sell majority and controlling stake of its subsidiary, MPCL which is engaged in the business of developing 1,050 MW (2x525 MW) coal-fired thermal power plant located at Malibrahmani, Angul, Orissa.'

The development comes amid media reports that MIEL is in talks with potential buyers, including Adani and JSW Group, for selling stake in MPCL, which has significant liabilities.

Sources said JSW could acquire MPCL for about Rs 3,000 crore. However, this could not be confirmed.

ET