TAQA pulls out $1.6 bn deal with JP Power
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.