UAE's TAQA to buy Jaypee's hydro projects for $1.6 b.

A consortium led by TAQA, the international energy and water company from Abu Dhabi, has agreed to acquire two hydro power plants with 1,391 MW capacity in Himachal Pradesh from Jaiprakash Power Ventures Ltd., a subsidiary of Indian infrastructure conglomerate Jaypee Group.

The acquisition is expected to close in 2014 and is subject to regulatory and third party approvals.

'The enterprise value of the deal is pegged at around $1.6 billion comprising debt and equity. The negotiations were finalised recently,' said an official privy to the development. The power plants are Baspa Stage II and Karcham Wangtoo.

TAQA, which holds a 51 per cent stake in the consortium, will have control of operations and management of both facilities under the proposed deal. The remaining equity will be held by one of Canada's largest institutional investors (39 per cent) and IDFC Alternatives' India Infrastructure Fund II (10 per cent).

'The equity invested by the consortium in the acquisition of the two hydroelectric plants will be nearly $616 million (Rs. 3,820 crore), of which 51 per cent is from TAQA. The consortium will also acquire the assets' non-recourse project debt,' the UAE-based firm said in a statement.

HBL