TAQA pulls out $1.6 bn deal with JP Power

The Political and Business Daily - - CORPORATE -

ABU Dhabi Na­tional En­ergy Co (TAQA) is pulling out of a $1.6 bil­lion deal to buy two In­dian hy­dro­elec­tric power plants from Jaiprakash Power Ven­tures be­cause of "a change in strat­egy".

A com­pany of­fi­cial, who de­clined to be named un­der brief­ing rules, did not give fur­ther de­tails of the de­ci­sion.

In March, TAQA said a con­sor­tium led by it had agreed to buy the two power plants from the Jaypee Group com­pany. The con­sor­tium was to spend $616 mil­lion on eq­uity in the plants, and in ad­di­tion take over their non-re­course project debt, bring­ing the to­tal en­ter­prise value to around $1.6 bil­lion, a TAQA spokesman had said at the time.

State-run TAQA, with 51 per cent of the con­sor­tium, was to con­trol the op­er­a­tions and man­age­ment of both plants.

PSP In­vest­ments, one of Canada's largest in­sti­tu­tional in­vestors, would own 39 per cent and an in­fra­struc­ture fund run by In­dia's IDFC Al­ter­na­tives was to hold 10 per cent.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.